Supermarket numbers - Tesco down, Sainsbury's up
It’s National Supermarket Numbers Day! Or something. Well, at least some numbers have emerged from the mouths of the bean counters at Tesco and Sainsbury’s. In the case of the former, it’s TRAUMATIC NEWS!
Yes, Tesco has unveiled its first drop in profits since 1994. Which is a pretty lengthy period of impressive money-making by anyone’s standards. Pre-tax profit for the six months to 25 August came in at £1.7 billion, down 11.6% from the same period last year. Yeah, only £1.7 billion. As Alex Ferguson might say, it’s squeaky bum time.
The excuse that has been trotted out by Tesco is that they’ve got an investment programme designed to improve their UK stores, which is costing them a cool billion. The programme has already put 8,000 new staff members in to existing stores and blah blah blah blah.
Meanwhile, sneaking up when no one is looking is Sainsbury’s, with a 1.9% growth in sales over the past three months – not bad when held up against Tesco’s 0.1% equivalent. All of this in spite of the fact that they’ve recently employed a shoplifty bloke who has been banned from ALL of their stores and their cardboard copper has been nicked in Barnsley.
Tesco CEO Philip Clarke shone a light on the mood among shoppers these days, focusing on the increase in popularity in their Everyday Value range, saying:
“They tell us they're resigned that this is the new norm. They don't have great expectations that things are going to improve in the short term. They're hit by fuel prices, they're hit by taxes, real incomes aren't growing so people are having to adjust and what we see is that they are starting to buy into supermarket brands more, they're starting to buy our Everyday Value range... [which] is up 10% like-for-like.”
Is he right, or is your local Tesco just a load of old bollocks these days? Have your say below – if you dare.