NationStates Jolt Archive

http://www.guardian.co.uk/business/2009/apr/21/tesco-record-profits-supermarket

Not really that interesting, but I find it a bit unfair at this time.

Huh!? Whats unfair about it?

Huh!? Whats unfair about it?

Well, millions of people unemployed, many homeless, and then they make £3bn

Well, millions of people unemployed, many homeless, and then they make £3bn

Suggest an alternative. People shouldn't buy things anymore? Tesco can then lay off more?

Or maybe someone in government should figure out how much they can make and still be good guys?

Well, millions of people unemployed, many homeless, and then they make £3bn

I don't see that as unfair. They are a business in the bussiness of making money, unless you see that as intrinsicly unfair?

Suggest an alternative. People shouldn't buy things anymore? Tesco can then lay off more?

Or maybe someone in government should figure out how much they can make and still be good guys?

They should give at least half a billion to charity.

They should give at least half a billion to charity.

How many people do they have to lay off to do that?

Also, maybe they're making more because people are cooking at home more and eating out less. (not likely, but it could be true.)

They should give at least half a billion to charity.
Okay. Forced to, or is 1/6 the traditional amount for 'fairness' in the UK? The Baptists only ask for 10%.

They should give at least half a billion to charity.

Riiiight.......work hard to make a profit to pay your staffs pensions etc and be forced to give it away, or make a big loss and wait for the government to bail you out

Britain would be broke if everyone took option 2

How many people do they have to lay off to do that?
Potentially none, if it's genuine profit.

Potentially none, if it's genuine profit.

Precisely, they've made more than enough, give some to people who actually need it.

its good to see the destruction of towns across the Kingdom is continuing unabated :)

but yeah thats good time to get a management position at Tesco methinks...or maybe they should move into the banking business

Precisely, they've made more than enough, give some to people who actually need it.

Sir Fred Goodwin?

its good to see the destruction of towns across the Kingdom is continuing unabated :)

but yeah thats good time to get a management position at Tesco methinks...or maybe they should move into the banking business

Should have got into banking years ago.

Sir Fred Goodwin?

Fred the Shred? He needs a good kicking.

Should have got into banking years ago.

I think they could of done if only the hadn't moved into car insurance and with all the business guile of Crash Gordon gave every boy racer cheap cover

Fred the Shred? He needs a good kicking.

that he does but this is New Labour and your now under arrest for sedition

Precisely, they've made more than enough, give some to people who actually need it.

Why should they? Put yourself in them shoes. You are I belive still quite young, below 20, perhaps still in the last stages of your education?

Say in the fullness of time you brought about your own company. Now with all of the cash you earn, you get to pay your self a large wage(taxed of course), and then you pay all the bills for property, and runnign cost of the bussiness, and all staff wages, and corperation tax on top of this, and any other taxable dues you may owe due to the nature of running a bussiness.

The along comes govment white coat man and declares that since your company earns ex amount in profit a year, the goverment wants to take some more money from you and give it to those in need.

What would you tell the white coated man from the goverment?

All this profit, of course, is merely preparation for their real goal (http://www.youtube.com/watch?gl=GB&v=0PSyiRXIEyc).

Why should they? Put yourself in them shoes. You are I belive still quite young, below 20, perhaps still in the last stages of your education?
15.

Say in the fullness of time you brought about your own company. Now with all of the cash you earn, you get to pay your self a large wage(taxed of course), and then you pay all the bills for property, and runnign cost of the bussiness, and all staff wages, and corperation tax on top of this, and any other taxable dues you may owe due to the nature of running a bussiness.

The along comes govment white coat man and declares that since your company earns ex amount in profit a year, the goverment wants to take some more money from you and give it to those in need.

What would you tell the white coated man from the goverment?


There would be a vast contrast between the amount of money I would make, and the amount of money they've made. But, if I had a good deal to spare, I would be willing to give some of it up.

All this profit, of course, is merely preparation for their real goal (http://www.youtube.com/watch?gl=GB&v=0PSyiRXIEyc).

rofl.

What you're missing is that money is just a social construct. It's just colored paper, or worse, just numbers on a hard drive. Money has no value of its own; it's merely a document that can be used to redistribute goods.
If you print $1,000,000,000,000 and give everyone a share, no one will actually become richer. And it works the same whether you just print the money or have actually earned it. Thus, by simply giving the money away, Tesco will accomplish nothing - prices will rise (very slightly) to reflect the increase in M1, M2 and M3.

On the other hand, Tesco can rather put this money to good use - build more discount supermarkets, thus simultaneously creating the jobs to build and staff them, and offering goods to the public at a lower price.

15.

I'd be very careful of how critical you are then seeing as how they will likely be your future employer :wink:

But, if I had a good deal to spare, I would be willing to give some of it up.

its 3 billion in a time of recession odds are they are going to have to invest every penny rather wisely instead of pissing it away on charity

then again they will just get bailed out if they go bust anyway...

I'd be very careful of how critical you are then seeing as how they will likely be your future employer :wink:

*Bitch slaps*

its 3 billion in a time of recession odds are they are going to have to invest every penny rather wisely instead of pissing it away on charity

then again they will just get bailed out if they go bust anyway...

Tesco are the least likely of the supermarkets to go bust. (or was that sarcasm?)

*Bitch slaps*

oh hush you will likely have to stay in school until your 26 at the current rate so you may as well get used to doing all the crap jobs :p

Tesco are the least likely of the supermarkets to go bust. (or was that sarcasm?)

depends on how its current war with Asda (aka walmart) goes

oh hush you will likely have to stay in school until your 26 at the current rate so you may as well get used to doing all the crap jobs :p

:mad:

depends on how its current war with Asda (aka walmart) goes

Tesco is a giant here, it branches into far more areas than asda.

Tesco is a giant here, it branches into far more areas than asda.

actually its gradually losing ground, the sleeping giant has awoken with its disorganized messy floors and product market that appeals to the modern day professionally unemployed man

just look at how big Asda has gotten since 2000

actually its gradually losing ground, the sleeping giant has awoken with its disorganized messy floors and product market that appeals to the modern day professionally unemployed man

just look at how big Asda has gotten since 2000

Meh, what was that statistic a few months ago? £1 in 3 is spent in tesco. It would be a shame if the yanks puppet prevailed.

A lot of this probably comes from the less expensive to operate overseas operations. That's the only way I can square it with factory gate price rises and retail price pressure.

They'll also earmark a lot of this for reinvestment in price reductions, so it can be a good thing, as with new jobs.

But they are losing market share, and have been for a while.... And Morrison's is storming away with it.

/sighs that it is his job to know this crap

Actually, this profit is pre-tax, so by making such a huge profit Tesco are providing a great source of public money for 'useful' spending by the government.

Actually, this profit is pre-tax, so by making such a huge profit Tesco are providing a great source of public money for 'useful' spending by the government.

Depends how much of it they can siphon out of the country...

They sell stuff cheaply, so obviously in times of economic trouble people will shop there, rather than at M&S, Waitrose etc.

Depends how much of it they can siphon out of the country...

Considering the heir is an exile in Israel who's still wanted for fraudulent charges in this country.... quite a bit.

Considering the heir is an exile in Israel who's still wanted for fraudulent charges in this country.... quite a bit.

seems like an EU embargo against Israel is in order.

Oh noes, evil companies still make money, we should get them to give it all back so they can fire more people. :(

Considering the heir is an exile in Israel who's still wanted for fraudulent charges in this country.... quite a bit.

I was thinking more of the extensive "tax easement" network that was recently exposed by the Guardian and Private Eye.

I've not heard about that, do you mean Terence Leahy's son? Or the descendant of the founder?

Precisely, they've made more than enough, give some to people who actually need it.

Like the shareholders, who invested their money in the business and want to see a return? Let them donate money to charity. Tesco are supposed to make money for their owners, not give it away.

I was thinking more of the extensive "tax easement" network that was recently exposed by the Guardian and Private Eye.

This is equally true.

I've not heard about that, do you mean Terence Leahy's son? Or the descendant of the founder?

The latter: Shirley Porter (http://en.wikipedia.org/wiki/Shirley_Porter). In fact, she has returned to the UK and paid some of the damages, though huge legal fees remain and more investigations.

http://www.guardian.co.uk/business/2009/apr/21/tesco-record-profits-supermarket

Not really that interesting, but I find it a bit unfair at this time.

How is it unfair?
The company I work for has made profits as well, despite and partially because of the credit crunch.
It's a simple law that if you offer fairly low-price goods in a time when people are watching their money, you'll make more business than people charging more for the same goods.

How is it unfair?
The company I work for has made profits as well, despite and partially because of the credit crunch.
It's a simple law that if you offer fairly low-price goods in a time when people are watching their money, you'll make more business than people charging more for the same goods.

Yeah people give up the services of the higher priced stores.

Yeah people give up the services of the higher priced stores.

Or broadband providers, or gas and electricity companies, etc. etc.
They just shop around more and will go out of their way more to save a few quid.
I wouldn't be at all surprised if Aldi and Lidl made even more profit than Tesco this year.

Or broadband providers, or gas and electricity companies, etc. etc.
They just shop around more and will go out of their way more to save a few quid.
I wouldn't be at all surprised if Aldi and Lidl made even more profit than Tesco this year.

Walmart made so much they paid all their employees a bonus.

Walmart made so much they paid all their employees a bonus.

Same in my company ;)
In all honesty, much as I agree that with big money comes big social responsibility, I think taxing them extra for being more successful than expected isn't right.
They'll pay their taxes, and that's that. There is absolutely no need to put yet another levy onto them.

Like the shareholders, who invested their money in the business and want to see a return?
Like their own employees most of all. Most of them are underpaid in such stores.

Riiiight.......work hard to make a profit to pay your staffs pensions etc and be forced to give it away, or make a big loss and wait for the government to bail you out

Britain would be broke if everyone took option 2

Britain is broke. Hence the Bank of England printing more money (sorry, "quantative easing"). So, in reality, it wouldn't make a difference which option people took, we're fucked anyway.

Well, then, maybe they can finally give me the £75 in pay that I'm still owed from when I worked for them over the summer.

Britain is broke. Hence the Bank of England printing more money (sorry, "quantative easing"). So, in reality, it wouldn't make a difference which option people took, we're fucked anyway.

True.....but I'm sure Alistair Darling is going to tell us the opposite in his budget this afternoon (but then again, this Labour government are pretty good at lying/fudging/fiddling numbers)

I predict a freeze on duty on eyebrow dye.

How many people do they have to lay off to do that?

I would imagine none since they made 3 billion profit...

Who doesn't love corporate logic: well we made 3 billion profit, but we have to give half of a billion, one sixth of that, to charity. Better lay off a few hundred people and close a couple stores so we don't only make 2 and a half billion profit.

Like their own employees most of all. Most of them are underpaid in such stores.

How are they underpaid?

How are they underpaid?

Umm in that they don't earn that much money?

Umm in that they don't earn that much money?

Really? How much should employees in a job which requires little qualification or experience and that could be performed by a very large and growing number of unemployed people be paid?

Really? How much should employees in a job which requires little qualification or experience and that could be performed by a very large and growing number of unemployed people be paid?

How much would you say a fair wage is?

How much would you say a fair wage is?

One which reflects the marginal benefit the individual employee brings to the business.

One which reflects the marginal benefit the individual employee brings to the business.

Ahhh well I think we almost agree. It's that word marginal that I have the problem with.

Each and every employee is critical to the running and the profits for each and every company that employs.

So how do we even begin to see how important a memeber of staff is or isn't?

Shelf stackers for example, if they all left, then no product gets stacked and thus none sold and so no profit.

Ahhh well I think we almost agree. It's that word marginal that I have the problem with.

Each and every employee is critical to the running and the profits for each and every company that employs.

So how do we even begin to see how important a memeber of staff is or isn't?

Shelf stackers for example, if they all left, then no product gets stacked and thus none sold and so no profit.

Indeed; which is why the wage of shelf stackers is reflected in their availability. If there were no shelf stackers, the business would be unable to function and the marginal benefit employing them would provide to the business (and therefore their wages) would be very high. However, shelf stackers are readily available, particularly during times of growing unemployment such as we are experiencing and so I think it is safe to say that the marginal benefit an easily replaceable employee offers is very low.

Indeed; which is why the wage of shelf stackers is reflected in their availability. If there were no shelf stackers, the business would be unable to function and the marginal benefit employing them would provide to the business (and therefore their wages) would be very high. However, shelf stackers are readily available, particularly during times of growing unemployment such as we are experiencing and so I think it is safe to say that the marginal benefit an easily replaceable employee offers is very low.


Heh so in essance you are saying that these arbitray low wages would increase if everybody thinking of doing the job held out for a higher wage?

Heh so in essance you are saying that these arbitray low wages would increase if everybody thinking of doing the job held out for a higher wage?

Absolutely. When employees are hard to find wages tend to rise. Unfortunately, it also tends to drive inflation which then erodes the value of the rising wages.