The EU debate - Part III

Tesco have been ****ed since Leahy left

Aldi's model rose off the back of the recession, in recent times their continued growth has been due to attracting a broader segment of the market, by increasing their quality.

 

Yep, it's been going on for quite some time.

 

That's a given mate.

The latter might have to become £2 pound land

Aldi will do alright out of it though, their market share will increase and they'll be able to pass on price hikes on a level playing field with the big 4

 

I won't pretend to know loads about the situation but I have sympathy with Tesco on this. When I worked for a company supplying Tesco, our selling price to them was agreed at least six months in advance while our procurement was mostly from abroad and could be affected positively or negatively by all sorts but as a supplier we had to take the rough with the smooth, bought currency well in advance etc. as Unilever presumably do.

 

Unilevers deal with Tesco obviously runs by the quarter, which is why they've had this disagreement at the start of Q4.

 

Fair enough. I only caught a snippet on the radio this morning and read a bit of The Metro on the train. In that case, there should be a bit of leeway from Tesco but it wouldn't surprise me if Unilever are using it as an excuse to bump up revenue from products less affected by currency fluctuations. Will be interesting to see how it works out. I think Unilever need Tesco more than vice versa but they clearly need each other quite a lot.

 

I think the tesco issue highlights one of the problems with the current system, and brexit is a symptom more than an overall cause. Other economies are struggling and wars are waging due to it, brexit ir no brexit.

 

I reckon this is what Dull listens to in his bedsit

 

Despite what may or may not be happening elsewhere, 99% of the UK's current turmoil and economic meltdown can be laid directly at Brexit's door!
The markets, the vast majority of the economic community, and virtually all businesses consider it a giant step backwards.

 

Brexit is a massive catalyst.

What's the alternative to "the system"?

 

The Sensible Party.

Free KFC for all Englanders.

 

An alternative is what a fair few economic experts are discussing as they feel history shows us that the current one is built on debt and poverty, and unsustainable. Brexit related events are a localised symptom of that.

It needs something that sheds the wealth and opportunities better, which will probably mean most of us have to give.

 

Do you have a link?

Has Socialism ever worked for a sustained period of time?

 

Unilever deal is annual Tobes, but all the main suppliers to Tescos are in continued discussions as it goes far deeper than just unit cost. I could bore you to death for hours over Tesos relationships with the large suppliers. The only thing I will say is that de-listing of products and these kind of stand offs with regard to commercial discussions are pretty normal.
And no , I don't work for Unilever!

 

I think Unilever are trying it on with their demands, but this is normal with the big suppliers and supermarkets such as Tesco.
However, it's the other way round for who needs who. The supermarkets need the branded products, so a deal will be done.

 

They're discounters, so they'll always benefit in difficult economic times. They'll still have to protect their margins though, which means either higher prices for consumers, or squeezing more out of their suppliers. Either way, the collapse in the pound is going to cause a lot of people a lot of pain.

 

I linked something earlier on, but sadly it seems to have got swamped.

I'v read differing views on the effectiveness, and even if socialism has ever been tried in reality.

 

I'd have thought it depends on the brand. Tesco's share of the grocery market is 28% and most Unilever brands are replaceable with competitor products. Are people loyal enough to the likes of Ben & Jerry's and Marmite that they'd switch their regular shop to a less convenient other supermarket?

 

Obviously, I disagree with the 99% claim, but it's academic.

Given that brexit hasn't yet started, and so far it's just words, the links to falling pounds and sundry doom and gloom simply reinforce my view that the current economic system is flawed, unsustainable and in need of a radical overhaul.

 

Is there an alternative to Marmite?!

 

That's the only one I could think of which doesn't have an obvious replacement. If you eat marmite you're frankly a bit of a wrong 'un though.