High Street Stores & Other Businesses At Risk | Page 14 | Vital Football

High Street Stores & Other Businesses At Risk

I think a lot of their issues were down to theft. Lot of pant knickers out there.
 
Tesco has reportedly asked suppliers to agree price cuts as it steps up its battle with budget supermarkets. The move is part of its shift to an "everyday low pricing strategy", which will see it use fewer promotions.
https://www.bbc.co.uk/news/business-53284788

Ahhhh fewer promotions...but everyone but Tesco should pay for it?

Yes, I work in food and indeed they have. The EDLP they want to do, rarely works and from my calcs for my business it’s going to drive lower volume versus their current strategy which has been very successful (big half price promos).

It’s good in one respect they have a strategy especially after they lost so much post 2009. But their strategy is too far in the other direction, they need to find a sharper headline price granted which most suppliers would agree with, but not lose the promotions that keep customers satisfied. There’s another element of loyalty they want to lock in, but I’m not sure it’s in the media so I better not talk about it publicly but this has caused us some confusion internally.

And of course, they want suppliers to pay for it and have asked for an absurd amount of money from my company, which we laughed at.

The problem I have is my yes-men salesmen (&women) always want to take numbers they (Tesco) want to see so we’ve had some heated debates internally to get them to take several options back, proving what they want to do doesn’t work in my part of their shop.
 
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Interesting one isn't it? They are trying to say you can get stuff as cheap as Aldi, but as you say (and are obviously well versed working in the industry) people are more used to going to places like Tesco to get the big discounts. So EDLP might well be saving regulars money, but they might not 'feel' that it is.
 
There’s an another element to what Tesco are doing to drive loyalty from an asset the have, the problem is this asset (use your imagination but most tesco shoppers have one), actually exiles a significant proportion that don’t. If what I am being told is to be believed.

It’s pretty clear what Tesco want to do from their TV adverts, go after Aldi and keep momentum from the benefit they’ve had from
COVID - and they are flying at the moment.

What they need to do, is go EDLP on bigger bags and get suppliers to make bigger products - bigger pack, better value.

Big 4 Retailers who try and copy Aldi always fail, because when you scratch beneath the surface there are many differences in their business models. The obvious one being the big 4 are PLC’s (except Asda but who are part of Walmart) whilst Ze Germans are private.
 
Cheers Dan, just instantly struck me as the typical super market approach to farmers for milk, pushing to 60/90 day payment terms etc etc.

For Tesco there's also the kudos element and price for quality perception to factor in I'd have thought.
 
Cheers Dan, just instantly struck me as the typical super market approach to farmers for milk, pushing to 60/90 day payment terms etc etc.

For Tesco there's also the kudos element and price for quality perception to factor in I'd have thought.

Ironically I think retailers should shorten their payment days to give money to suppliers to invest in capacity, efficiency, quality etc

Retailers don’t give consumers credit so they never have a cash problem, why do they need to hold so much cash? They aren’t looking to buy other companies in different retail markets like garden centres, so they don’t need the cash. Be a massive help, especially as food consumption at home isn’t going down with a recession coming up
 
That's bigger picture thinking with a benefit down the line, few people think about anything other than the now.
 
Pret a Manger the next

Coffee chain Pret A Manager is to close 30 of its 410 UK outlets as part of a post-pandemic restructuring.

It is also planning job cuts to "reduce headcount across remaining UK shops to reflect lower footfall, rental costs and new safety measures".


https://www.bbc.co.uk/news/business-53304869
 
Pret a Manger the next

Coffee chain Pret A Manager is to close 30 of its 410 UK outlets as part of a post-pandemic restructuring.

It is also planning job cuts to "reduce headcount across remaining UK shops to reflect lower footfall, rental costs and new safety measures".

https://www.bbc.co.uk/news/business-53304869
They are closing the one in Stratford, which has not been open that long. No surprise though, it was always poorly stocked and the cleaning left something to be desired.

Strange though, as it is in a prime site near Shakespeare's Birthplace - plenty of passing trade etc. But I'd imagine the rent and rates are pretty eye-watering which would go a long way to explaining why it's on the list.