[clockworks]

I've no official link for this, as I heard it from my supervisor who lives in the area, but I've no reason to disbelieve it.

Tesco are closing their Distribution Centre at Chepstow, with the loss of 700 jobs. They plan to open a smaller DC at Avonmouth.

No idea if this is totally unconnected to the current economic situation (for valid operational reasons), or if the company are using the crunch as an excuse to shed workers.

I'm also wondering about Lakeland (AKA Lakeland Plastics) - went into one of their stores on Monday. Had to pay with cash, as the chip & pin terminals weren't working. Apparently this was not just a local hardware problem.
I wonder if their Visa Merchant's licence had been withdrawn?

[Sporran]

this was on the welsh news the other night. Tesco are moving it to a much larger facility just the other side of bristol. Ultra modern state of the art facility.

It also said all staff at chepstow would be transferred to the new location.

Tesco moving distribution centre out of Wales - WalesOnline

[Steven]

It would appear you will be given the opportunity to take up the same position at the new location, so *no [enforced] job cuts*

[ROBIN50N]

supermarkets arnt doing to bad at the moment. weather that will change though.

[Joe Slow]

I don't think Tesco will suffer as much, in a bad economy, as other businesses do. Because people still need to shop for food and so on. Businesses that sell premium goods and high cost goods, like cars will get hit much harder.

[niceguy235uk]

Yes but lots of them sell white goods and tv's etc etc.

Maybe they are feeling the pinch in this area.

[Beany31]

Originally Posted by clockworks

I'm also wondering about Lakeland (AKA Lakeland Plastics) - went into one of their stores on Monday. Had to pay with cash, as the chip & pin terminals weren't working. Apparently this was not just a local hardware problem.
I wonder if their Visa Merchant's licence had been withdrawn?

Hi, I work in a Lakeland, just as part time staff, but every now and then there's a problem with the networking system that connects Lakeland to Barclays and other merchants, it was probably temporary for that day. I've been informed that Lakeland aren't in trouble with the credit crunch, cheers.

[ROBIN50N]

Originally Posted by niceguy235uk

Yes but lots of them sell white goods and tv's etc etc.

Maybe they are feeling the pinch in this area.

but they sell them much cheaper thats where people are going to but these kinda things. thats why places like comet and currys are falling behind.

[niceguy235uk]

Originally Posted by ROBIN50N

but they sell them much cheaper thats where people are going to but these kinda things. thats why places like comet and currys are falling behind.

True!

[Miyazaki]

Originally Posted by ROBIN50N

supermarkets arnt doing to bad at the moment. weather that will change though.

People always need to eat right? I can't understand how they would be affected by the recession.

[Hi-Def]

Originally Posted by Miyazaki

People always need to eat right? I can't understand how they would be affected by the recession.

exactly everyone needs food so the supermarkets will survive

[reddevil63]

Originally Posted by Hi-Def

exactly everyone needs food so the supermarkets will survive

Supermarkets will survive, the only thing that will change is the customers shopping habits. They will be more cautious price wise and on branding.

[THE AMATUER]

Originally Posted by Miyazaki

People always need to eat right? I can't understand how they would be affected by the recession.

In any recession people spend less, supermarkets will feel the squeeze too. People start buying the budget brands instead of the premium ones and also cut down on the amount of 'treats' they might have bought in better times. There has been a big increase in fruit and veg market sales where people are trying to save money, it all has a knock on effect with supermarkets.

I agree people always need to eat so supermarkets will always have a trade but they will start feeling the pinch as well. That normally means job losses.

[clockworks]

Originally Posted by Sporran

this was on the welsh news the other night. Tesco are moving it to a much larger facility just the other side of bristol. Ultra modern state of the art facility.

It also said all staff at chepstow would be transferred to the new location.

Tesco moving distribution centre out of Wales - WalesOnline

Thanks for the link - not as bad as my supervisor told me, but he is Welsh!

The cost of the bridge tolls will put many staff off relocating to Bristol - I can't see Tesco paying the travel costs indefinitely.
I wonder if the relocation threat is just a negotiating ploy by Tesco, hoping for a financial deal from the Welsh Assembly?

[clockworks]

Originally Posted by Beany31

Hi, I work in a Lakeland, just as part time staff, but every now and then there's a problem with the networking system that connects Lakeland to Barclays and other merchants, it was probably temporary for that day. I've been informed that Lakeland aren't in trouble with the credit crunch, cheers.

Glad to hear it.

[Ian J]

Originally Posted by Joe Slow

I don't think Tesco will suffer as much, in a bad economy, as other businesses do. Because people still need to shop for food and so on.

British supermarkets are the most profitable in the world due to the huge amounts of high margin processed food that we non food lovers buy. In a recession people still need to eat but they will move away from processed food to the lower margin basic foodstuffs as they try and get more value for their money.

Additionally the big supermarkets are already losing business to the budget supermarkets who offer lower prices and this trend is likely to continue and when Asda start their much vaunted price slashing campaign the others will have to follow suit.

[eric pisch]

Originally Posted by clockworks

I've no official link for this, as I heard it from my supervisor who lives in the area, but I've no reason to disbelieve it.

Tesco are closing their Distribution Centre at Chepstow, with the loss of 700 jobs. They plan to open a smaller DC at Avonmouth.

No idea if this is totally unconnected to the current economic situation (for valid operational reasons), or if the company are using the crunch as an excuse to shed workers.

I'm also wondering about Lakeland (AKA Lakeland Plastics) - went into one of their stores on Monday. Had to pay with cash, as the chip & pin terminals weren't working. Apparently this was not just a local hardware problem.
I wonder if their Visa Merchant's licence had been withdrawn?

You also need to remember that alot of these companies are paranoid about what the stock market thinks (like M&S) and even thou there making very healthy profits if there slightly down (or worse) on stock market predictions they start sacking people and closing things to reduce there costs to please the markets regardless if its needed or not in an attempt to prop up there price.

Its another failing of the the current system as being a healthy company in profits and having a good asset portfolio seams to be worth less and less and share price and dividend seams to be more frequently driving company direction.

On a side note Tesco could allways sell some of the billions its has stashed away in landbanks its bought to stop over supermarkets competing with it

[eric pisch]

Originally Posted by Ian J

British supermarkets are the most profitable in the world due to the huge amounts of high margin processed food that we non food lovers buy. In a recession people still need to eat but they will move away from processed food to the lower margin basic foodstuffs as they try and get more value for their money.

Additionally the big supermarkets are already losing business to the budget supermarkets who offer lower prices and this trend is likely to continue and when Asda start their much vaunted price slashing campaign the others will have to follow suit.

chains like aldi and lidl now have 6% of the uk market, tesco recently announced there own "clone" budget brands to compete with them