Tesco mark up stock by 113%, then pay a million for it
While it's difficult to determine whether the Daily Mail is a newspaper or a creative writing project, there's the occasional story that takes our fancy. Today the paper reports that the accounts department at Tesco stuffed up recently, with regards to a small order of bikes from Universal Cycles, a subsidiary of Sports Direct. In case you're not a football fan, Sports Direct is owned by Mike Ashley - the man who's made a sow's ear out of Newcastle United and lost millions in doing so.
The Mail states that Tesco should have paid £984 for six Muddy Fox suspension bikes but handed over £984,000 instead. According to anonymous sources/imaginary pixies, Universal Cycles "has paid back £863,000 but Tesco claims it is holding on to more than £121,000 in outstanding funds". The error in payment was seemingly made in August, and now the supermarket are taking the company to court to recoup the rest, plus lost interest.
Quite why Tesco would only order six bikes at a time in the run up to Christmas is something of a mystery - surely they're going to fly out the stores? But if the story is credible, then Tesco themselves are having plenty of fun with the numbers too, as one comment points out:
"£984 for 6 bikes, that is £164 per bike... I wonder how much Tesco actually charge per bike?! Oh wait, just checked their website! Normal price: £350, now on 'special' at £250! Somehow can't find any sympathy for them!!!
By our admittedly shaky maths, that would mean Tesco has been marking up the bikes by 113 per cent when not on offer, and is still marking them up 52 per cent while they're doing you a favour. Every little helps, eh?