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Author Topic: End of year results. Hope that's not bad news on the job front.  (Read 8260 times)

Vinny1985

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Well not the best of results for the end if the year. I hope after all the hard work we have all put in they don't start making 1000s redundant. But this is tesco

kaled78

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as usual they talk about all the positives,then say at the end we are down as a group,the sooner they off load tesco bank and the loss making europe stores the better

lordadmiral

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yeap results are f***ed up.  Over 7% rise of sale brought nearly 20% profit drop, bravo clap cla clap clap clap :thumbup:. Hiring all those extra people due covid wasnt worth a single penny. If i had extra £5p/h to do OT i would work the whole f****ng year with time off just for hols, And i would be cheaper than new starters and twice more productive. Such performance (not) means that company will try to save some money. Not mentioning that share price droped again.

Morris999

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It’s not as simple as saying the company’s profits are down due to hiring all the temporary colleagues throughout COVID, and they weren’t worth a single penny just because the profits are down.

Like I said last April/may COVID has cost Tesco and will continue to cost a small fortune and the increased sales were never going to offset the cost.

Tesco has had to pay out for face masks, hand sanitizer, additional pos, protective screens around service areas, extra dot com vans, extra colleague costs( colleagues on front door etc), extra guarding costs, 2 colleague bonuses.
They have lost millions on seasonal items(Easter eggs last year is an example) throughout the year.
Then there were over 50k colleagues all either shielding or isolating on full pay for the first 8 weeks of lockdown and then still thousands throughout the rest of the year.
And that’s just off the top of my head.
I’m not defending Tesco, just pointing out that the temporary colleagues were not to blame for the big dip in profits and a lot were definitely worth it and did a better job than some long term serving colleagues.

Prince of Darkness

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I'm not disputing much of the extra Covid costs but in my store during lockdown 1 we were throwing money away on temps who were simply not needed, but were contracted. We could have cut 10% of the store's temps costs for no change in service levels.

BarryZola

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Instead of giving the government all of those hundreds of millions back in rates relief or whatever it was, they should have kept it and given a bigger bonus to staff and the rest would have made their balance sheet look as good as usual (probably).

just curious

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It’s not as simple as saying the company’s profits are down due to hiring all the temporary colleagues throughout COVID, and they weren’t worth a single penny just because the profits are down.

Like I said last April/may COVID has cost Tesco and will continue to cost a small fortune and the increased sales were never going to offset the cost.

Tesco has had to pay out for face masks, hand sanitizer, additional pos, protective screens around service areas, extra dot com vans, extra colleague costs( colleagues on front door etc), extra guarding costs, 2 colleague bonuses.
They have lost millions on seasonal items(Easter eggs last year is an example) throughout the year.
Then there were over 50k colleagues all either shielding or isolating on full pay for the first 8 weeks of lockdown and then still thousands throughout the rest of the year.
And that’s just off the top of my head.
I’m not defending Tesco, just pointing out that the temporary colleagues were not to blame for the big dip in profits and a lot were definitely worth it and did a better job than some long term serving colleagues.
These cost might have cost some money , but a lot of the cost would be tax deductable on the balance sheets - therefore done at little expense to Tosco , and what about the operational savings when stores shut earlier than midnight or opened later in the day ? , what about the sales they generated or gained when the clothing departments / electrical departments / computer gaming and cd's , birthday cards were all being sold  whilst the likes of Primark / Matalan / Currys / HMV , Card Factory etc just to mention a few were closed . The company possibly even got money from the Government to cover some staff pay when they were isolating by claiming furlough pay or some other grant ?  :-X :-X

Totot

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Range is down, sales is up, profit way down, it is an obvious why. But i can expect that coming from a company who got someone instructed from ho, do not put graves side ways, it will become jam lol viva flat lay salad bag. never knew in my life to make a jam is so easy.

Nomad

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Administrator Comment Can anybody explain Totot's above post ?
Nomad ( Forum Admin )
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forrestgimp

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Perhaps they live somewhere that weed is legal?

surlaroute

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the simulation is breaking down

Totot

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Can anybody explain Totot's above post ?
From the financial view, there are less range that sold that year compare a year before, but yet the selling revenue increase, that mean either individual price going up or less discount given but not as much less item not sold, quantity selling increasing or both. Meanwhile profit margin going down, mean cost going up, whatever the cost it, can be operational, or else. That mean efficiency is lower, with all the cutting staff, and benefit that been done since few years back, meaning they aim the wrong target, cutting resources doesn't always mean higher productivity.
That really show the understanding of business management and budgeting management on higher rank management.....not good.

The other thing that I said is about new guidance where I work in express. We should never put graves packaging sideways, because it make the graves become jam ( never knew to make a jam is soo easy lol, how its made, a jam, tesco version). And always put pack of salad lay flat, because if not, it will damaged the leaves, come from head office.

Another new thing that they going to implement in express (at least mine), in the nite, from 9 till we close, and few hours in the morning, the door will be close. There is already a sensor that will send signal if someone standing in front of the door, to this gadget that you carry around beeping, so you need to go to the door, see if someone  standing there going to steal or not, if not, let them in, one at a time, if you think they going to steal, dont let them in. One person in while other waited outside in the nite or early morning with closed door.

Profiling is one of the hardest ability to learn, and never 100%. Judging someone else profile base on the appearance within 5 to 10 second, will be so hard. There is no training, there is no list guidance what kind of person that we can let on not letting in, what attribute that warrant someone can not get in. Even sherlock need a whole episode to solve it lol.

This will create loads of problem, efficiency will be go down alot, mostly one on one is quite common in express in late hour. And if we refuse someone to get in, how we answer their question. We might end up getting sued base on discriminating customer, or someone might get offended and waited outside when we finished and do something to us. Anything wrong happend, I bet tesco will denied it. And blame it all to us.

alf

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Perhaps I've had too much to drink, but christ on a bike that was a journey to read.

stockcontroller

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I have genuinely tried my hardest 4 times now to make sense of that and I honestly can't.

gomezz

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The other thing that I said is about new guidance where I work in express. We should never put graves packaging sideways, because it make the graves become jam ( never knew to make a jam is soo easy lol, how its made, a jam, tesco version).
This is the bit that confused me:  "graves"?
"The progress of the kart is more important than its direction"

Nomad

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Well  :), just glad it's not just me  ???

Send explanations on the back of a post card  :D
Nomad ( Forum Admin )
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Totot

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The other thing that I said is about new guidance where I work in express. We should never put graves packaging sideways, because it make the graves become jam ( never knew to make a jam is soo easy lol, how its made, a jam, tesco version).
This is the bit that confused me:  "graves"?
I meant grapes

Totot

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Alright, I will make it simple with analogy, me selling vegetables. About financial report first.

I used to sell tomatoes, carrot and onion, earn let say £100. Got 2 employees, one is hard and efficient worker, the other one just so so.

A year after that, I only sell carrot and onion, but my selling revenue increased to £ 120. This happened either I sell much more carrot and onion, or I increase the selling price of carrot and onion, or I sell more while I increasing the price of both.

Meanwhile, from £100 last year selling revenue, I got £10 profit. But this year I only got £8 profit. Meanwhile handling only onion and carrot should make it take less resources, for example, the amount of time my employees to take it in, put it in the shelves, changing label etc. But why I got less profit than last year. Meanwhile, last year I said to my employees, that I am not going to increase your wages, cut your benefit ect, hoping that later on my £10 profit will increase if the sales revenue still the same.

There are more aspect about it, but it is easy to understand why profit gone down, even selling is up, but it will be too long to write it.

Another thing, to make it short, HO gave new guidance.
1. Do not put packs of grapes side way, must be straight up or it will become jam.
2. Put packs of salad flat, because if not, it will ruined the leaves of salad.
3. Shop door wont automatically open between 7-9 in the morning(still not really decided) and 9 to 11 in the evening. It will remain closed.
A staff would have a device that attached to their waist and will beeping when someone standing outside in front of the door.
The staff need to asses the person/people, before let them in. If the staff who hold this device think the person going to steal in the shop, he/she should not allowed the customer to get in. If he/she think the customer is alright, then let them in.
4. Let them in, one at a time, other customer will have to wait outside. Once the customer out, do the same process again, asses, and decide, let them in, or not.

Tesco logic.

Nomad

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 8-)

@Totot, I mean no insult but do you ever read  verbatim what you have just written before hitting post, spell check or check punctuation ?

If English is not your first language I apologize for posing the above question.

Somewhere in your simple post you're probably raising a good point.

Are you saying that HO guidance is that staff should assess customer(s) criminal intent before allowing or not allowing them entry into the store ?

« Last Edit: 17-04-21, 12:11PM by Nomad »
Nomad ( Forum Admin )
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Totot

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Apologized, english is not my first language indeed.
Yes, that is what they tried to implement in my shop, I could not care less about all the stuff that they make things up. But this one can give huge problem to staff.

dairyfresh

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1. Do not put packs of grapes side way, must be straight up or it will become jam.
2. Put packs of salad flat, because if not, it will ruined the leaves of salad.
3. Shop door wont automatically open between 7-9 in the morning(still not really decided) and 9 to 11 in the evening. It will remain closed.
A staff would have a device that attached to their waist and will beeping when someone standing outside in front of the door.
The staff need to asses the person/people, before let them in. If the staff who hold this device think the person going to steal in the shop, he/she should not allowed the customer to get in. If he/she think the customer is alright, then let them in.
4. Let them in, one at a time, other customer will have to wait outside. Once the customer out, do the same process again, asses, and decide, let them in, or not.

Tesco logic.

1 and 2 is common sense don't over fill cause it can cause damage to products.

3 and 4 haven't heard anything around our area so must only be certain stores if they've got high theft

knowles2

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Well not the best of results for the end if the year. I hope after all the hard work we have all put in they don't start making 1000s redundant. But this is tesco
That what they are already doing, why do you think they are rushing through changes to team leaders role and want to eventually get rid of thousands of managers.

knowles2

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I'm not disputing much of the extra Covid costs but in my store during lockdown 1 we were throwing money away on temps who were simply not needed, but were contracted. We could have cut 10% of the store's temps costs for no change in service levels.
In our store we needed more for longer.

King1999

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Well not the best of results for the end if the year. I hope after all the hard work we have all put in they don't start making 1000s redundant. But this is tesco
That what they are already doing, why do you think they are rushing through changes to team leaders role and want to eventually get rid of thousands of managers.

I would say the managers changes won't be quick enough.......everyones a target if they can save money.Full timers maybe.

NightAndDay

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The Lewis strategy is being continued by Ken Murphy. In fairness to him, the decision for the managerial structure change to superstores is a good one, no long term strategy should be formulated from the pandemic period as sales patterns, costs and profit are very much a one off due to the change in shopping habits and legislation caused by the pandemic. When the "new normal" takes off, it will be back to competing with Aldi and Lidl (their market share will inevitably rise due to not maxing out on real estate).

Tesco needs more than just structure changes to compete, the innovative solution lies in the various technology implementations at Tesco's disposal that can be used to accentuate it's core capabilities and to realise the value proposition of its dot com operation.