Thoughts from an active pensioner who is now somewhat past his Biblical "Use-by date"

"Why just be difficult, when with a little more effort you can be bloody impossible?"

Wednesday, 5 October 2011

Tesco - Sales down, Profits up

The Telegraph reports today on Tesdo
"Like-for-like sales at British stores - those open for more that a year - fell 0.7pc year-on-year in the second quarter"
"Pre-tax profits increased 12pc to £1.88bn in the six months to August 27"
OK, they claim that the profits came from Europe and Asia not the UK, but I am certainly not surprised that UK sales fell; couples like Mrs EP and myself are getting fed up with their "offers".

Today Mrs EP wanted a savoy cabbage; 78p or two for a Pound. What would we do with two cabbages? Even one is probably too much for the two of us. So we would have to pay 28p more that what is still a profitable price for the privilege of only having one.
I like doughnuts; over the past year they've gone up from 12 or so pence to 25 pence when bought individually. But a bag of five doughnuts costs 55 pence or two for a pound, so they could in fact still sell them at ten pence each and presumably make a profit. As we normally buy just two doughnuts, an experiment is now in place to ascertain the "freezability" of doughnuts. Will a warm microwaved doughnut with my elevensies be as good as one straight from the shop?
Yes, in most businesses you can negotiate a discount for quantity, but you would have to buy far lager numbers and you might get a 5-10% discount, and what Tesco is doing, as far as I am concerned is totally unacceptable - a 36% discount for buying two cabbages or a 48% discount for buying 5 doughnuts (if my maths is correct!)
For perishable goods, in many cases it is cheaper for us to buy one for the price of one at Waitrose, and as we can walk there, we also save the cost of petrol.

An afterthought: I did get two four packs of "Speckled Hen" for £8, so they're not all bad!

1 comment:

  1. So true, although the 8 Speckled Hens seems like a deal. Sadly, I'd never get 8 of 'em in my little freezer.......