£100,000 per day
That's what Tesco in Stornoway is taking.
And it is not all substitution from the Co-op, but will also be impacting on every grocery business operating in the islands, from the Clachan in Leverburgh to Cross Stores in Ness, and everywhere in between.
Before we all rush out and get our Tesco Clubcard numbers tattooed on our foreheads, remember that it is going to have an effect on your local businessmen and the local economy.
According to the notices in the staff room (I am moonlighting as the shelf-stacker on the biscuits aisle) the takings have ranged from £89,000 to £130,000 per day andexceed EXCEED the takings in Kirkwall and Lerwick who are the direct competition in the battle of the managers.
...and how much/little of your spending comes back into the local economy?
And it is not all substitution from the Co-op, but will also be impacting on every grocery business operating in the islands, from the Clachan in Leverburgh to Cross Stores in Ness, and everywhere in between.
Before we all rush out and get our Tesco Clubcard numbers tattooed on our foreheads, remember that it is going to have an effect on your local businessmen and the local economy.
According to the notices in the staff room (I am moonlighting as the shelf-stacker on the biscuits aisle) the takings have ranged from £89,000 to £130,000 per day and
...and how much/little of your spending comes back into the local economy?
41 comments:
Does this mean that someone on a low income, or unemployed, or a student, is a bad person through making a few savings?
Or that it's a simplistic case of the greater the profit, the more bad/evil a business is? I'm guessing you don't admonish the more successful clients of your business in the same way :-)
Compete or die. It's commercial evoluti*...competitiveness. If you are selling cans of coke at 80p, and Tesco come in to sell them at 25p, who is in the wrong?
Those first week taking you outline will quickly tail off. There's a significant number of "bulk buys" in there, from local people (especially in the tourism sector) hoovering up bargains in large quantity. Also, some of the income has moved from Inverness Tesco to Stornoway Tesco. I know two people who are extremely happy they won't be doing the long, monthly drive and bulk buy there anymore. Less diesel expenditure and better for environment (so you should be pleased). Calmac may notice a slight dip in revenue on the Stornoway / Ullapool run, though.
How about mentioning some of the positives?
1. More competition for the Cooperative and other shops.
2. More choice of products for residents of Lewis.
3. More money left in the purses of pensioners after their shop to pay off their increasing fuel bills.
4. More local people employed, on better wages, than the previous employer.
5. Lewis a more attractive place to move to (you and others want the population up) as there's more choice in the shopping scene.
Only downside is that it isn't yet open on a Sunday. The sooner that is amended the better, so the crowds ease off, and people who work odd or inconvenient hours have the option. No-one bats an eyelid in the Uists at people shopping on a sunday in the supermarkets there. Bring it on!
Consumerism is my religion, and Tesco is my God.
After years of complaints about the high cost of living in The Western Isles along comes a store that charges EXACTLY the same prices as in the rest of the UK and you have a go at them for taking too much money! Would you prefer that they put up their prices to stop people spending money?
and how much/little of your spending comes back into the local economy?
Well how about all the staff salaries, including all those extra staff taken on, for a start.
Why do you not ask where all the money that I might spend with a local retailer goes? If I spend loads of money at Bain Morrison how much of this comes back into the local economy?
Surely none of us can shop anywhere if we are worried about where our money goes once it has left our wallets! Perhaps Angus I won't consider using your business because your spend to much of your money (presumably your profits)taking your family abroad, how does this benefit the local economy?
I hope the Co-op is suffering after trying to extend is monopoly on the island! I really think that was a cheap shot and another way to make us pay more than everywhere else just because they can get off with it.
Long live Tesco!
There is a price comparison check between Stornoway Tesco and Co-op in this local photo discussion thread.
Soory Angus but for once you are out of step on this one as the other comments say it all. We have been ripped off for too long and those profits have gone into heft bank accounts not the local economy.
This shop has introduced fair competition and useful flexible part time employment.
But then as a business man your self you would resent others breaking up cartels etc.
On that point i can't wait until Tesco gets a petrol station as it surely will and breaks up the huge cartel run in Stornoway by 3 greedy men.
Lets have the Co-op figures during their monopoly run and compare the grudge spend against the willing spend at Tesco. Agree with all the reasoned support blogged so far.
i do hope you don't want to see the co-op closed as that would leave us in the same boat as before.
Yep, I'm not a fan of supermarket ethics but competition can only be a good thing and now there is a wider range of products on island. Roll on Tesco petrol and I hope that its Engies that sells and gets a good price and that the others get stung.
A Lidl and/or an Aldi would also add to the mix in Stornoway, and provide a better range. And less chance of any monopoly or price collusion. Tesco is a step in the right direction for now, anyway.
As a former Presto, Safeway, Morrison and Somerfield customer I am disappointed with Tesco. Last time I went their Stag loaf was dearer than in the Coop and only the sliced version available, their fruit drinks were also dearer and the IrnBrue price and selection a disgrace. The deli is minute with little variety and the polybags require a fairly extensive search to find one and a major feat of engineering to open and fill them The only plus points are the width of the checkouts and a separate till for the bloody lottery cards
I'm an occasional ranter about the evils of Tescopolis and was in there today for the first time, mostly out of curiosity (who needs them when there's French cheese on Point Street) - not quite the earth-shattering experience that some comments would suggest, but there were some pretty good prices, and most of all, fruit and veg that don't look like they'll go off before I got them home (and indeed they didn't), and no aisles full of teenage employees too busy flirting with each other to get out of the way so you can get your bread.
How is it more moral to spend slightly more money at the co-op, or even a local shop, for poor quality stuff and poor service, with no appreciable difference in what goes to the community? All power to shops like those in Uig and Ness but they need competition too to keep them sharp.
I think my argument with Tesco is more at their buying end - they do screw the producers. The question is whether we their customers (care or) can do anything about that.
All that have gone before, are you really that naive to believe that Tesco is doing what it is doing for the good of the Island.
Their reputation is to drive out the competition and then once they have completed that objective they have a free reign to charge whatever they want.
And you fools are supporting it. Let's have this same discussion in a years time.
Tesco are also testing the market with the choices. They will decide what sells and what makes them the most money and cut the rest of the products. It's called economics for those of you uneducated folk.
I also can't wait to see what support there will be on this blog when they decide to open on a Sunday.
All I can say is that it is bliss in the Co-op at the moment.
Anon 5:06pm
I agree with everything you say. I have avoided the place since it opened but happened to be in the area this afternoon and needed some milk. I'd heard that they had the checkout situation sorted so thought it wouldn't take too long to get my 4 pints.
I ended up spending £13 on things that I didn't know that I needed as opposed to the £2 I was planning on spending. They do have some great deals and those deals will probably drive the way we all eat. I can imagine the whole of Stornoway eating Omega 3 fish fingers followed by a Fab ice lolly as they are all half price at the moment.
I hope they keep up the general standard of a Tesco and don't try to knock the competitors out of business and then screw us but I can't help thinking that this is their plan.
As for the shop staff, they are already "pissed off" as I heard one of them saying to their mate today as she was only working on the bakery and wasn't in charge of all the bread anymore. How some people get their kicks.....
Anon 6:36pm
"Compete or Die" and when everyone else is dead what else do you have to do but play with yourself or your customers?
I hear they are doing a roaring trade in Tesco Value bitter, lager and assorted alcohol value brands.
That's going to do wonders for our early shoppers in the Islands. They are voting for Tesco to open 24 hours x 7 days.
8:10pm
All that have gone before, are you really that naive to believe that Tesco is doing what it is doing for the good of the Island.
Who has said that? The fairies in your ear? No-one here; you're dreaming, boy. We live in a capitalist society. Profit is the aim of Tesco. That's called a "business".
Their reputation is to drive out the competition and then once they have completed that objective they have a free reign to charge whatever they want.
Evidence?
And you fools are supporting it. Let's have this same discussion in a years time.
Yes. One year on. How things have changed in Lewis.
Tesco are also testing the market with the choices. They will decide what sells and what makes them the most money and cut the rest of the products. It's called economics for those of you uneducated folk.
I guess as I only have two degrees and a PhD, I couldn't figure this out and needed you to tell me. Did you know that other supermarkets, shops and businesses do this too? Do you realise this is why all the supermarket chains, including Coop, have club card schemes? It's called Operational Research and Market Analysis. Clever little boy!
I also can't wait to see what support there will be on this blog when they decide to open on a Sunday.
?? Only comment so far about this has been +ve.
All I can say is that it is bliss in the Co-op at the moment.
Good for you! And it means I don't have to meet you when shopping - everyone's a winner!
One or two of the younger ladies on the tills could do with lightening up a bit. They are about as chatty as the statues on Easter Island.
Anon 8:10pm
Typical Lewis male chauvinist pig. You assume the posting was made by a male.
Well Dr. Anon, we are so impressed by your credentials.
Judging by the number of people in town yesterday willing to pay at least 3 times over the odds for cheese, sausages, jam and wooden ducks, I think a bit of variety does no harm. I have dipped back into the Co-op as they have things that Tescos don't (plastic carrier bags etc). But if they don't get those bleeding trolleys and pallets away the bread and fruit juice, and onions, I shall take my business elsewhere. When is Waitrose taking over the old Town Hall?
I hear Tesco’s are doing a roaring trade on hair dye. Huge consignments have been heading for an address in Vatisker. The “man” who has placed the order said he couldn’t wait until the home delivery service begins – cos he wants to look his best “on Carnival Day”. So look out for a spikey haired mousey coloured chap wearing a fetching blazer
Les
I've heard that the staff in Tesco are getting berated by shoppers because the prices at the Stornoway Tesco aren't as cheap as those in Inverness.
You are obviously an employee or PR person for Tesco, but I really think that the Stornoway public aren't stupid enough to think that Tesco will charge what it thinks it can get away with.
One can compare against mainland Tesco prices by using their online shopping portal against a mainland delivery postcode.
Good that the staff aren't chatty.
If you want to have chatty till ladies go elsehwere - I'd rather have efficent staff any day than fumbling cronies who chat to their neighbours while I am stuck in a monster cue.
Anon 12.03 - Unlike you I actually check things before making any comments. A blogger from Lewis called Bluewave published a list of items he had purchased in Tesco Stornoway and compared the prioes to the Co-op Stornoway. I took that same list down to Tesco Stafford in the middle of England and, with the exception of a loaf of bread, the prices were EXACTLY the same. I later found that I had checked a different variety of bread and the same variety was the same price.
So you see I can justify my comments unlike many who just mouth off for the sake of it. If you want to believe that you are paying more in Lewis then that's your perogative - maybe you want people to feel you are hard done by - but it just ain't the truth.
By the way I didn't choose the items on the list and don't work for Tesco. Why the hell would I want to?
Beats me why you love complaining when there's nothing to complain about.
I hear (not seen) That tesco have a notice on their door that they will accept the Co-op Divi. as part payment. Now the co-op are doing the spend £30 and get £10 off in the gazette. Looks like we will all be doing half our shopping in each supermarket! Let battle commence
Well, anon 3:03, this implies that if a till operator is making any conversation while passing your goods thorough the barcode reader, that he/she is somehow inefficient. Mind you, cold 'efficiency' does fit in well with Tesco's business ethos.
*TIP: next time you're stuck in a monster cue, pop the rubber tip out of the (thick) end, then you can safely climb out.
I've made my pseudo-philosophical comments above somewhere so I'll just add that I've discovered Tesco muffins (split and toast type) are vile. Never noticed that before.
And Les, you'll have seen that Bluewave himself has reminded us that his list was very short, a bit random and probably not representative. It would be mildly interesting for someone to do a properly planned test shop in both places and then you can do it for us in Stafford.... or maybe we can all find something more constructive to do!
Les
I've heard Stafford is one of the most expensive places in England to live and that Tesco inflate their prices deliberately so that you can dream of your holiday home in Lewis.
Stafford Les
I've done my own price comparison and this is what I found
Tesco Value Range Guga was certainly not as tasty as the home grown variety but it was on a buy one get one free deal so I bought ten and froze them for Christmas.
Tesco own tampax whilst much better value at 10.3p per item weren't quite so absorbent so over a period of time wouldn't be as good value.
Fab ice lollies over the same period of time, however, absorb less but are brilliantly priced for those of us who need that extra sugar rush during those special times of the month.
I have to confess to giving the fruit and veg isle a wide steer this week but may try it next week when the hormones have settled.
All in all I think we should tell Tesco that it's ok to stay here as long as they don't go into the windfarm business.
Les
By the way thankyou for reminding us that Stafford is in the middle of England for those of us Islanders who don't have a passport.
I'm just back from Saudi and usually shop in Tesco, Mecca.
I was disappointed to be unable to find the following items in the new superstore:
- A family size jar of sheep's eyeballs
- 24 can case of Halal value lager
- Cheese and passion fruit crisps
- Goat feed
- Halal bananas
- Camel milk yoghurt
- Scallops in fruit juice
- The Koran
- Adult size nappies
- Timotei coconut and raspberry shampoo (Halal anti-dandruff)
Can you get these in Stafford (which I believe is in the middle of Englandshire)
I live in Ireland and usually shop in Tesco, Tipperary.
I was disappointed to be unable to find the following items in the new superstore:
- A family size jar of peanuts in Guinness
- 240 can case of Tesco value Guinness
- Cheese and Guinness crisps
- Caviar in Guinness
- Guinness flavour bananas
- Guinness yoghurt
- Scallops in Guinness
- The Tipperary Gazette
- Adult size nappies
- Timotei Guinness shampoo (anti-dandruff)
Can you get these in Stafford (which I believe is in the middle of Englandshire)
I work on a Kibbutz and usually shop in Tesco, Tel Aviv
I was disappointed to be unable to find the following items in the new superstore:
- Pickled herring with cream cheese on rye bread sandwiches
- 24-can case of Kosher value lager
- Sardine and watermelon crisps
- Sheep feed
- Kosher bananas
- Kiwi fruit yoghurt (with chunks)
- Chicken entrails in fish sauce
- The Talmud
- Adult size nappies
- Timotei rhubarb and vinegar shampoo (Kosher anti-dandruff)
I live in Vatisker and usually shop in Gordon Diesel's shop.
I was disappointed to be unable to find the following items in the new superstore:
- A single portion of fish
- 4 pack of flavoured tea (camomile and daisy)
- Plain crisps
- Chicken nuggets in dinosaur shapes
- Easy peel bananas
- Goat milk yoghurt for rubbing on my skin to keep it soft
- Fruit juice in children sized cartons
- Harry Potter in Gaelic
- The collected works of Alex Salmond (audio book or big print novel)
- Adult size nappies
- KY jelly in 14 gallon drums
Can you get these in Stafford (which I know is in the middle of horrible Englandshire)?
I agree, Tesco is not a good thing for the island. Prices are not lower than Coop and they are very a predatory company. The negatives outweigh the positives in my opinion
The Co-op were robbing the people for two months,and have now taken their prices down. Well all I will say is feck them as I have not got a short memory.
How strange the rankings of evil some people have. Tesco are evil, bad, predatory, put small shops out of business, thus we should protest, boycott et al.
China, on the other hand, imprisons, tortures, then harvests the organs of still-living people who practice a peaceful religion.
But that's not an issue of importance or as evil as big bad Tesco, as everyone settles down to watch the Olympics with their can of non-Tesco drink in hand, feeling self-virtuous.
Anon 11:20 AM: Com’n it’s only right that he looks good for his special, special friend – Alex of the Golden Orifice – who’s been known to refer to himself as Mr. Orr.
Poor old Labourites. Still smarting from the trouncing they got 15 months ago. It can't be easy trying to defend such incompetence both north and south of the border, while the SNP just gets more and more approval. Hard times for Broon and...er, who's in charge in Scotland again??
After walking a non biased journalistic tightrope, the intrepid Gazette – where controversy is confined to the ‘readers letters column’ concludes that the match between Tesco and the Co-Op is (almost) a draw.
Well, as shoppers conclude - £3.00 saving on a £30 shopping bill, even if based on a non scientific sample - is not insignificant.
Dirty tricks are alleged, with Co-Op throwing a mischievous spanner in the works – objecting to Tescos planning application. Then Tesco accepting Co-Op ‘Shop & Save’ vouchers. Tesco – as any new store would – offered voucher discounts on opening. Co-Op matched these, and went on to offer subsequent saving of £3.00 for spending £15.00. Tesco could have chosen to ‘up the ante’ with a combative response, but they simply matched the Co-Op by offering to provide the same deal.
The Co-Op has made much of the fact that they have served the Western Isles for many years, when others did not - true. I recall as a child in the 1950’s – awaiting the mobile shop of Co-Op or Liptons, visiting the far flung regions of Bernera, delivering essentials not to be obtained until the next visit to Stornoway. However, whilst we should be grateful for this – we should also understand that the Co-Op was not a charity, distributing aid – they were a business, exploiting a niche.
The Co-Op has built their business on this model – generally operating where the biggest operators don’t. There is nothing wrong with this, but the ultimate test is competiveness, and to call on the ‘loyalty card’ is, and should be of little relevance when considering the current weekly food shop bill.
After visiting the Tesco store, I was surprised. I expected a clone of the generic UK operation – but no. The preliminary distribution booklets were 50% Gaelic - focussing on Scots produce. The aisles were festooned with Saltires, proclaiming the Scots origin of merchandise, and it was clear that much effort had been made to source Scots produce. In England there is no St Georges Cross, proclaiming the origin of produce – a diminutive British Framers Tractor logo with Union Flag is the principal nationalistic icon. So – it would seem that Tesco is not a monolithic ‘one size fits all’, but sensitive to, and able to understand, and meet the needs of specific local requirements.
There are bleats of concern for small traders, but worthy traders will continue to survive However, I would not be sorry to see the demise of some of the ‘Bells Road Bandits’, where to anticipate the cost - you generally multiply by three the price you would expect to pay on the mainland
It is early days. Space is limited. Many of Tesco ‘own brands’ have not yet been introduced – which will mean greater savings, but there should be no doubt that Tescos arrival is good news – maybe not for the Co-Op, who may have to get used to ‘playing second fiddle’, but as with most things - life is a combination of both price and choice - so as elsewhere, there should be room for both retailers.
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