Tesco – Social Vandalism in Action

Tesco recently confirmed the closure of 43 of its’ stores across the UK. They are expected to see over 2000 workers losing their jobs. The move sees it shutting down 18 Tesco Express stores, 6 Home Plus outlets, 12 Metro stores and 7 Superstores as part of a “turnaround” plan recently announced by the new chief executive Dave Lewis. The unprofitable Express and Home Plus stores will close on 15 March, while the selected Tesco Metros and Superstores will shut down on 4 April.

I'm torn over this announcement. Whilst this is indeed, very bad news for all those employees that Tesco are getting rid of through no fault of their own; I also I feel it is not a bad thing if these monstrous corporate giants like Tesco have to downsize. They have already ruined lots of high streets with their constant bullying expansionist policies. This move is really though just to help share holders in a short sighted move to boost short term profits as normal the staff will suffer the cost of previous management mistakes.

How the mighty have fallen through greed, complacency and by treating their customers like idiots. Tesco should be doing all it can to get customers to trust them again instead of continually trying to con and fleece them. In my eyes, they started to go downhill when they expected the unemployed to work for them for nothing.

Financial Mis-Management?

You’ve got to ask how does a company that has successfully brought down real wages, squeezed every last drop from their suppliers, and pushed nearly every other store out of town, still managed to screw it up?

Tesco's attempt to enter the U.S. market may have been the beginning of the end with their £1bn loss, but remember last year when Tesco managers actually over-estimated profits by as much as £250million. This wasn’t just a simple account error, it effectively defrauded the market. It had to be deliberate, why else would the Serious Fraud Office announce it was launching a criminal investigation into accounting practices at the company?  Tesco itself launched its’ own investigation suspending eight of its UK executives.

As part of last week’s announcement, they’ve said there will be jobs lost at the Head Office too, well I hope they start with the directors who knew about the false figures and said nothing about them, along with their internal accountants, and their external auditors who passed these accounts.

Then there was the constant building of new stores all over the country which ultimately haven’t had the patronage they predicted, indeed stores at Immingham and Chattris have been moth-balled before they even opened. Interesting that they advertise new stores saying "Bringing 250 jobs here" - just more false Tesco accounting. For each "new job" at Tesco, another shop closes in your high street and the majority of the Tesco jobs are minimum wage zero hours contracts - they are not known as a good employer. Every new Tesco Express or Metro usually means the closure of an independent.

Death to the local high street

Whilst like I say, I’m very sorry on a personal level for people losing their jobs! Tesco however, are the author of their own doom! They marched relentlessly across Britain, decimating small businesses and traders! Tesco opened up their 'Express' shops killing all small newsagents and convenience stores within a half mile radius, then they don't make any money and want to close them. Tesco bullied the corner shops owners, giving “Buy one get one free” then lowering the quantity then telling the public their prices are the lowest.

As an aside, I have a Tesco Express and One Stop convenience store both very near to me. There are huge disparities in the prices with Tesco Express being generally more expensive. As Tesco own One Stop (did you know that?), why are there such big differences?

The damage to the local community has already been done. The original local shops shut down, and now local people who got a job at Tesco have been made redundant leaving no local shops at all. Do Tesco really think the general public had no brain? Well the answer is clear, the general public has taken their business elsewhere where the offers are genuine.

Although sounding like a commie, it’s always the poor unfortunates that pay the price for management ineptitude and adoption of the wrong expansionist strategies. Tesco are like a virus. Their greedy shareholders have only themselves to blame for the downturn! True business people creating business is what this 'Nation of Shopkeepers' is all about. It’s not about one monolith !

All about them and not the customer

It isn't even the competition that is destroying Tesco. The sheer stupidity and arrogance of their strutting managers in the stores was an outward indicator. They offer too much choice and too many false misleading and confusing offers. Then there’s the despicable ways they treat suppliers, this is now coming home to roost, it is them who have bore the costs of all the ‘2 for 1’ nonsense not Tesco. The farmer’s crops are taken with no set price. They are told what they will be paid the following year. Supermarkets are only as good as their products and having substituted "Beef for Horse" to make financial gain in the short term they’re stuffed in the long term.

Tesco have behaved like an arrogant bully for too long. They have made a fatal flaw in underestimating how important it is to have the customer on your side. They have, by their behaviour, alienated a lot of people. I would never shop in Tesco again and I am truly glad to see them doing so badly. They’ve lost sight completely of the most basic principle of retail business. The customer comes first, the employees come second. They however, have it all wrong. Profit does not come first , second, third and so on.

Over the last few years when I’ve been in the Warrington superstore I've found myself struggling to get past self-important Tesco suited executive types who regularly have important 'board' meetings right in the middle of aisles, they seem more concerned with each other than the customers who can't get past. I've tried making a sarcastic comment or two, like "Sorry, to inconvenience you" but only got cold stares. Tesco do seem to employ a number of staff who are arrogant because they see  working for Tesco as being above all other shop workers but they clearly aren't customer-friendly.

Tesco's appreciation of customers is to line their own pockets more than actually be sincere and caring to the customers' needs. Customers have been ignored because Tesco directors just felt its' reputation would pull through. Faced with the reality that now things have turned, with Lidl and Aldi providing better competition they’ve found themselves having to actually pull their sleeves up, by which time it’s probably too late.

It didn't seem to cross Tesco’s minds that price was important to us, the customer – especially in a recession. When you check the prices indicated under the products on the shelf you may have noticed the number of items marked £1 or multiples of a £1, and way above the real price of the product. I do wonder whether they are they trying to copy the £1 shop, believing people will buy anyway thinking that a £1 is cheap. At least in the £1 shop you do get a bargain! Tesco effectively priced themselves out of the market. No one wants job losses just fair prices.

Realistic Competition

Tesco’s competition was always similar supermarkets who all rip the public off with high prices, but then came the likes of Aldi and Lidl who offer similar quality products to Tesco but at significantly lower prices.  Journalists often talk about them as being discount supermarkets, but Aldi and Lidl goods are generally the same, if not better quality than the muck the UK big 4 have got away with selling us for so long.

Give customers good quality and fair prices and treat them well and nobody will be closing branches or head offices. Until the Aldi/Lidl revolution, prices in England generally were ridiculously inflated. Tesco and its ilk try to sell the number of checkouts they have but Aldi have proved that queues at checkouts aren’t that off-putting if you’re getting the right prices.

Bye Bye Tesco

Tesco forgot some of the golden rules of retailing. You have to please the customer, you have to make shopping a pleasant experience, lowest price is not everything but realistic prices are. They also seem to forget that money spent on customer service training is repaid double.

Tesco got too big for their boots and in doing so contributed to the death of the corner shop in many towns and villages. Now they’re closing down their own stores that caused the corner shops to shut in the first place leaving what? Ghost towns? Or maybe an opportunity for an enterprising local? Ironically many communities fought to keep them out In the first place! You are not wanted Tesco. Take your sub standard, overpriced goods along with your blue sky buzzwords and go. I pray your managers never get employed by other retailers, as they’ll probably bring them down too.

Every Lidl helps!