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Author Topic: 6 Monthly results.  (Read 6309 times)

forrestgimp

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6 Monthly results.
« on: 06-10-21, 08:20AM »
Just got the email about the 6 monthly results, they look ok however one thing stood out like a huge red flag. At the bottom of the email he tells us we are going to be saving 1 billion quid over the next 3 years and we all know what that looks like dont we.

zebot1976

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Re: 6 Monthly results.
« Reply #1 on: 06-10-21, 08:47AM »
Always said once this Pandemic is considered over they start going on a culling spree to save costs.

Also the rise in National Insurance & possibly Corporation Tax ect next year isn't going to help the situation neither so they have to claw all this money back somehow which usually means job losses, & it not just be Tesco's but other major retailers to as it looks like we are heading into grim times unfortunately.

Question is where will they start first?




Hammer10

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Re: 6 Monthly results.
« Reply #2 on: 06-10-21, 09:01AM »
More bull why does it not feel like it’s all good in stores shelves always empty due to no staff tills always calling for non existent staff customers queuing down the aisles what happened to one in front no wonder we all shop elsewhere I think we are being told a pack of lies.

Morris999

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Re: 6 Monthly results.
« Reply #3 on: 06-10-21, 09:13AM »
It will depend if the 1 billion pounds is all new or incorporates some of the changes announced this year.

So could include the manager changes along with the People partner ones in there.

From what our Frontend manager said yesterday after the last minute conference call on Monday they were on, they are looking at putting more Self-serve in some stores and removing more mainbank, among other efficiency changes.(return of throughout in a big way).

I wouldn’t be surprised if more PFS go fully unmanned in the next couple of years, along with customer returns going through any manned checkout like other stores do, once Tobacco products drop below a certain lvl, and then there’s Phone Shop, Pharmacy Etc.

whatajoke2019

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Re: 6 Monthly results.
« Reply #4 on: 06-10-21, 10:01AM »
From Our T35co:

To give us the fuel to invest in our priorities and to offset inflationary pressures, we need to continue our long-standing approach of being as simple, agile and productive as we can be. We want to make sure we only spend money where it adds value for customers and where it will make a real difference. In total, we are aiming for around £1 billion of savings across the Group over the next three years, freeing up resources to focus on what matters most to our customers.

From the press release:

Cost efficiency is a deep-seated principle within Te5co that has been brought back to the fore in recent years, enabling
us to regain our competitiveness and rebuild the financial strength of the business.
As we look forward, we see significant further opportunities to simplify, become more productive and reduce costs. As a
minimum, we are seeking to offset the impact of cost inflation on our business each year. In addition, we believe we can
create additional headroom that will allow us to fund investments in competitiveness and growth, supporting the other
three strategic priorities.
Having conducted a detailed review, we have identified c.£1bn of gross savings through simplification across areas such
as goods not for resale, improved productivity, optimisation of our delivery network and central overheads.
We expect to deliver these savings over the next three years. Whilst our intention is to do this predominantly through
incremental changes to existing operations, we will continually review opportunities to accelerate our plans and highlight
any exceptional costs which could be incurred as a result.
We will provide an update on progress against our performance framework and these four strategic priorities at our
interim and preliminary results each year


Rapid

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Re: 6 Monthly results.
« Reply #5 on: 06-10-21, 10:25AM »
It means less high paid management, less shop floor staff, penny pay rises if atoll at all and double the work for those wanting to remain. Then you have the stressed management wanting to pass the buck to colleagues that only work a shift a week.
« Last Edit: 06-10-21, 10:37AM by Nomad »

RocketRonnie100

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Re: 6 Monthly results.
« Reply #6 on: 06-10-21, 10:26AM »
“Whilst our intention is to do this predominantly through
incremental changes to existing operations, we will continually review opportunities to accelerate our plans and highlight any exceptional costs which could be incurred as a result”

Is what’s worrying me!  8-)

whatajoke2019

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Re: 6 Monthly results.
« Reply #7 on: 06-10-21, 10:42AM »
It will never happen but perhaps instead of axing people left, right and centre on the shop floor they need to start looking 'higher up' if, and it's pure speculation, they are planning even more 'changes' to "save money" (in the short term because in the longer term it'll bite them on the backside eventually!)

At the rate things are going we won't even need a CEO on obscene amounts of money!

thats nice

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Re: 6 Monthly results.
« Reply #8 on: 06-10-21, 12:13PM »
I wish they would stop all this convoluted, beat around the bush garbage.
Say it straight, xyz are going. >:(

Cwtch

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Re: 6 Monthly results.
« Reply #9 on: 06-10-21, 03:17PM »
Here we go again. Bet there will be cut backs in store again. Where they take them from I don’t know. On my shift on dairy I have 1 colleague and one manager filling and yet we’re still over on hrs. This is getting a joke. Most managers in our store fill all day apart from one or two managers who’s face fits and they spend hours in the cafe with their staff and nothing is done because they are “managing “ like they are paid to do . After all the cut backs these managers are still there however the ones that work aren’t 🤬🤬

barafear

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Re: 6 Monthly results.
« Reply #10 on: 06-10-21, 03:31PM »
Interesting to see what was the only target of the big 6 that was missed......colleagues recommend T as a good place to work or so. Maybe they think these are where the savings can be made. Disappointed not to get more than a thank youmto colleagues, whilst no doubt managers and directors will be rewarded and shareholders are having "value" returned to,them by way of share buy back, which will also help directors reach their bonus targets via EPS measure

NightAndDay

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Re: 6 Monthly results.
« Reply #11 on: 06-10-21, 06:35PM »
3 areas I see structure changes happening, In Express, replacing SMs in low taking stores with cluster managers who will look after 2 or 3 low taking stores and Store Directors in Superstore formats being replaced with Area Managers and an SOM covering 2 regional groups and a change to SS structure so it now goes CA -> SL -> TM -> 1 DSM rather than Lead Managers -> SM -> SOM/AM rather than 1 SD per SS.
« Last Edit: 06-10-21, 06:39PM by NightAndDay »

Rapid

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Re: 6 Monthly results.
« Reply #12 on: 06-10-21, 10:35PM »
Morrisons are going to have a good Christmas  >:D

Hammer10

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Re: 6 Monthly results.
« Reply #13 on: 07-10-21, 03:02AM »
So Tesco doing nicely can’t say the same for the government prices on every thing increasing except wages this is going to be a blood bath for Boris remember polltax riots then get ready for the inflation riots because people have had enough .

Vinny1985

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Re: 6 Monthly results.
« Reply #14 on: 07-10-21, 07:37AM »
Can you say if this is store level email or higher up the food chain. A billion is a hell of alot. The cuts will need to be huge

Vinny1985

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Re: 6 Monthly results.
« Reply #15 on: 07-10-21, 09:08AM »
Some one posting they got a email about cuts is not 100 percent true,  All the information is on our tesco. So it isnt a email that only someone got. The way the post was reported it sounded like a email that only high up people got. This is just scaring people.  Reading into more than it might be. Just my personal thought.  It was nice someone else posted the press release report tho

Totot

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Re: 6 Monthly results.
« Reply #16 on: 07-10-21, 10:00AM »
For years, all the strategy is about cutting cost. No ceo and manager got ability to head on with marketing strategy against lidl or aldi. Only to make yearly reports looks good on the surface, fooling some investor who can read deeper than number. For the high up is just to justified their high salary and bonus.

It is another carlos ghosn style that in the end, the company will suffer and the lower worker will take the most of the impact.

forrestgimp

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Re: 6 Monthly results.
« Reply #17 on: 07-10-21, 10:15AM »
Its the Ken Murphy Our Half Year results email everyone can get if they opt in. Opt in and read it for yourselves the paragraph you are looking for is near the bottom with the headline of

Save to Invest.

No conspiracy's no scare mongering its in black and white for all to see.

NightAndDay

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Re: 6 Monthly results.
« Reply #18 on: 07-10-21, 12:15PM »
You also have to remember the recent structure change of SLs introduction to SS formats is planned to take years to come to fruition as they're relying on natural wasteage ratger than paying out redundancy, when this does happen, it will account for a significant chunk of this cost savings.

Also they don't mention savings purely on operational costs, they could also be relying on different suppliers to provide a cheaper service.

Rapid

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Re: 6 Monthly results.
« Reply #19 on: 07-10-21, 02:03PM »
Heard they might be introducing the IndeedFlex app to get Assistants. Sainsburys are using this already.

RocketRonnie100

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Re: 6 Monthly results.
« Reply #20 on: 07-10-21, 02:13PM »
What’s the IndeedFlex App @Tesla? What does it do?

Rapid

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Re: 6 Monthly results.
« Reply #21 on: 07-10-21, 02:31PM »
Supplies staff Google it

NightAndDay

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Re: 6 Monthly results.
« Reply #22 on: 07-10-21, 02:36PM »
https://www.thesun.co.uk/money/16339460/boris-johnson-national-living-wage-hike/?utm_medium=Social&utm_campaign=sunmainfacebook&utm_source=Facebook#Echobox=1633509302

This would be an impetus against Tesco looking at cost savings on lower than inflation pay rises. If this proves true, it really gives Tesco very little wiggle room to give a poor pay rise next year and would have further knock on effects if they continue as they have been doing with pay rises being the same amount across most grades diminishing the differential.

Red75

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Re: 6 Monthly results.
« Reply #23 on: 07-10-21, 03:16PM »
A billion pounds is a lot of money. It equates to about £2500 for every Tesco employee (approximately 400,000 employees worldwide). Not that this metric matters, it just serves to emphasise how much money it is. There could be some quite radical cost cutting and the penny pinching pay rises will continue. I would guess that the savings from this years management restructure are in the tens of millions so there are a lot of savings still to be made.

barafear

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Re: 6 Monthly results.
« Reply #24 on: 07-10-21, 03:16PM »
I don't believe Boris made any reference to the level of the NLW in his speech.
What his speech and his general rhetoric have been/did say is that he wants to move to a high skill/high wage economy.
However, the problem for retail and a lot of other industries is that the skiils required to do the job are "low" - so unless all our jobs just disappear, then our jobs will always be low skill and low pay. I'm not saying this to diminish any of the people that work for Tesco - and I know in terms of payrises in the past and other discussions, people state that they have gained skills working for Tesco over a number of years etc.etc.

However, the crux of the matter is:

How much training does a new starter get to do the job and if experienced staff have left the company for any reason, how long has it taken to replace them - or share their job around - and at what level - generally the lowest paid grade (B/C general asst I think)

In terms of Tesco saving £1bn over three years - as others have said, much of that may already be in the "system" working its way through - other suggestions might be:

if Online is working so well for Tesco, then we don't need so many stores - we could move to a giant online DC like Ocado.

Another thing I've noticed from working in store - not "saving" as such but more like "windfall profits" -

the fact that Tesco seem to have moved nearly all their special offers to Clubcard deals means that anyone without a clubcard is "paying over the odds" - surely this must be boosting the bottom line.