jackwhite Posted February 9 Share Posted February 9 33 minutes ago, P.K. said: In these days of JIT it's dumb to hold a lot of stock. Even with the vagaries of the Irish Sea the rule stays the same ie the more stock you hold the more wonga you have bound up in it. Tesco took Shoprite over back in October. Any Shoprite stock that passed over to Tesco at that time would only be worth to them what they can buy it in for. I would have thought that was bloody obvious... So they should make a loss or reduced profit on it just to stop you from whinging? All of this hasn't actually gone through yet. They are doing bits at a time, even a store at a time. I'm not keeping right up to date with it, but I don't think the PE store has been done yet. So it's still under the Shoprite brand, currently. It will take them time to convert everything over too. Maybe when they do the PE store, all the prices will become the same as Douglas. Maybe they'll take a view on it that they still want the profit, and it won't. I'm going to say Tesco know a hell of a lot more about this than you and, oh, that holding onto a few quid of stock, that will likely sell anyway, won't kill them. Quote Link to comment Share on other sites More sharing options...
P.K. Posted February 9 Share Posted February 9 1 hour ago, jackwhite said: So they should make a loss or reduced profit on it just to stop you from whinging? All of this hasn't actually gone through yet. They are doing bits at a time, even a store at a time. I'm not keeping right up to date with it, but I don't think the PE store has been done yet. So it's still under the Shoprite brand, currently. It will take them time to convert everything over too. Maybe when they do the PE store, all the prices will become the same as Douglas. Maybe they'll take a view on it that they still want the profit, and it won't. I'm going to say Tesco know a hell of a lot more about this than you and, oh, that holding onto a few quid of stock, that will likely sell anyway, won't kill them. We simply took the decision to add Bishops Finger Strong Kentish Ale to our weekly Tesco delivery. Which essentially means we hold the stock not Tesco or Shoprite. But then if you want to take advantage of bargains the "if you can store, you can score" maxim always applies. The bottom line is simply that everyone knows, no doubt even you, that there is an island premium to be paid. However nobody likes to be ripped off. Except, perhaps, people making excuses like you... Quote Link to comment Share on other sites More sharing options...
Hairy Poppins Posted February 9 Share Posted February 9 (edited) To be fair a lot of the stock that Tesco inherited from Shoprite as part of the deal (Iceland, Sainsburys, assorted other frozen brands) was cleared out pretty quickly. I remember Peel Shoprite selling off loads of Sainsburys branded alcohol for almost 80% off. They've acquired the Shoprite warehouse so I'm sure they'll be running it in an efficient way to maximise their return on investments. Fair play to them. It'll be interesting to see if they have any warehousing for the clothing and expanded homeware offerings they are introducing. Edited February 9 by Hairy Poppins Quote Link to comment Share on other sites More sharing options...
P.K. Posted February 9 Share Posted February 9 2 hours ago, Hairy Poppins said: To be fair a lot of the stock that Tesco inherited from Shoprite as part of the deal (Iceland, Sainsburys, assorted other frozen brands) was cleared our pretty quickly. I remember Peel Shoprite selling off loads of Sainsburys branded alcohol for almost 80% off. Quite. So the idea that Shoprite may have been holding three to four months worth of stock is clearly a nonsense... 1 Quote Link to comment Share on other sites More sharing options...
Roger Mexico Posted February 9 Share Posted February 9 1 hour ago, P.K. said: So the idea that Shoprite may have been holding three to four months worth of stock is clearly a nonsense... I don't think it is. The question is: stock of what? They probably held fairly low levels of stock supplied by Sainsbury because they would have been getting deliveries fairly regularly. But there might be several months worth of branded stock from other suppliers which would be delivered less frequently and probably would have required to be ordered in larger numbers to minimise price from the manufacturer. On longer-lasting items, such as alcohol, this shouldn't be a problem providing you have the storage space. It's also clear that after some weeks, Tesco management made the decision that all Sainsbury-branded goods needed to be got rid of fast. As the stocks of some of the lines finished, they were already being replaced on the shelves with Tesco-branded equivalents and they clearly didn't want the two side by side for any period. So big discounts were applied to clear the remnants. But that didn't apply to stuff that wasn't Sainsbury and you can still see those brands in the Shoprite stores today, even when they aren't stocked by Tesco. On stuff that both sold (and Shoprite may have paid a lot more for because of Tesco's superior buying power) there will still be stuff being sold at the higher price in Shoprites to recoup costs. Of course if the price differential means that people are going to buy it in Tesco for preference, the stock will take even longer to shift. Quote Link to comment Share on other sites More sharing options...
P.K. Posted February 9 Share Posted February 9 I beg to differ except for your last sentence. It does not make any sense at all to stock large amounts of a product for which you are asking a premium price. As you say it's going to be taking up a lot of space for a lot of time due to somewhat "hopeful" pricing. Shifting a lot of product with a smaller margin is probably more profitable in the long run... 1 Quote Link to comment Share on other sites More sharing options...
Capt_Mainwaring Posted February 10 Share Posted February 10 12 hours ago, P.K. said: I beg to differ except for your last sentence. It does not make any sense at all to stock large amounts of a product for which you are asking a premium price. As you say it's going to be taking up a lot of space for a lot of time due to somewhat "hopeful" pricing. Shifting a lot of product with a smaller margin is probably more profitable in the long run... Sorry but I think you're wrong. You only need to look at some of the use by dates on long dated products. Not long left on them. Hence, they've been sat in a warehouse. In fact a few times I found out of date items on the shelf which would have had 12 months plus if they'd only just procured them (including beer). 1 Quote Link to comment Share on other sites More sharing options...
Happier diner Posted February 10 Share Posted February 10 23 minutes ago, Capt_Mainwaring said: Sorry but I think you're wrong. You only need to look at some of the use by dates on long dated products. Not long left on them. Hence, they've been sat in a warehouse. In fact a few times I found out of date items on the shelf which would have had 12 months plus if they'd only just procured them (including beer). They must have been sat in a warehouse (or somewhere) but not necessarily in the warehouse of the store that they are up for sale at. If we go back in time 40 years and the advent of the big supermarkets, everything was double handled apart from frozen foods and veg. It was the day when tinned goods were the biggest sellers. Because of this supermarkets had great big warehouses. I know because I worked in one as a student. Then JIT came into play. They realised that to be competitive they couldnt afford to; A. Build great big warehouses B. Double handle every thing. The JIT approach basically put the onus of storage on the supplier and many goods would go direct from the supplier to the shelf. With the advent of more fresh foods and people wanting posher food this fitted in with the JIT. I'm guessing that because Shoprite was a much smaller outfit than tesco they wouldn't have the ability to spead stock around and enjoy the power of bulk purchasing discounts. So I further imagine thats why they had the big warehouse and also why some stuff had short use by periods. Maybe. The downside of the JIT is that the isle are cluttered with staff filling shelves during the day which is a bit annoying. They still do have night teams but in my days the night team did everything (apart from frozen and veg) and only in emergency did we go onto the Isles. Interestingly. Anybody want to guess what was the busiest time and day for supermarkets in 1978? Quote Link to comment Share on other sites More sharing options...
Happier diner Posted February 10 Share Posted February 10 17 hours ago, P.K. said: Quite. So the idea that Shoprite may have been holding three to four months worth of stock is clearly a nonsense... They could have had 3 to 4 months of slow moving stock. It's not really a nonsense, that's being a bit unfair.😥 Quote Link to comment Share on other sites More sharing options...
P.K. Posted February 10 Share Posted February 10 1 hour ago, Capt_Mainwaring said: Sorry but I think you're wrong. You only need to look at some of the use by dates on long dated products. Not long left on them. Hence, they've been sat in a warehouse. In fact a few times I found out of date items on the shelf which would have had 12 months plus if they'd only just procured them (including beer). Interesting though it is discussing groceries, JIT, supermarket stock control, use by dates, profit margins etc etc we are wandering off my point. Never mind that I view Shoprites' beer selection as very poor to re-iterate the price of some of their alcoholic beverages are still half as much again than Tesco. Still...! Tesco opened in 2000. Shoprite Chester Street closed in 2018. With 50% mark-ups on some products frankly I'm surprised they lasted as long as they did. But the writing was most definitely on the wall. So the demise of the IOM chain shouldn't be much of a surprise to anyone. However if their local fresh fruit and veg goes we will miss it. Co-Op IOM, however, still appear to be ok. Sure their prices are somewhat higher than Tesco but not stupidly so. To be fair they have pricing that we are prepared to pay for the convenience. Lot's of other folks would appear to agree as they're always busy. Shoprite could have learned from that... I can only hope that someone high up in the Tesco food chain (sorry) has the nous and clout to dump the remainder of any Shoprite stock at sale prices. I wish... Quote Link to comment Share on other sites More sharing options...
P.K. Posted February 10 Share Posted February 10 1 hour ago, Happier diner said: Interestingly. Anybody want to guess what was the busiest time and day for supermarkets in 1978? Pension day...? 1 Quote Link to comment Share on other sites More sharing options...
Happier diner Posted February 10 Share Posted February 10 3 minutes ago, P.K. said: Pension day...? Funny. It's good, but it's not right! Quote Link to comment Share on other sites More sharing options...
Happier diner Posted February 10 Share Posted February 10 8 minutes ago, P.K. said: Co-Op IOM, however, still appear to be ok The coop don't seem to do beer anymore. Only lager.🤢 And some cans of beer substitute 😐 Quote Link to comment Share on other sites More sharing options...
P.K. Posted February 10 Share Posted February 10 28 minutes ago, Happier diner said: The coop don't seem to do beer anymore. Only lager.🤢 And some cans of beer substitute 😐 Are you differentiating between beer and ale? Quote Link to comment Share on other sites More sharing options...
Happier diner Posted February 10 Share Posted February 10 46 minutes ago, P.K. said: Are you differentiating between beer and ale? HaHa. Perhaps. Coop used to have a good selection of bottled 'ales' including landlord and citra IPAs. Nothing now, just some small tins of goose island (which is passable but too much like lager for me). No bottles at all now and it's not just here, same in small coops in the UK. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.