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Tesco announced that it will end 24-hour shopping at 70 of its stores due to the growth of online shopping.

Around one in six of those currently open around the clock but the company said that due to the rise in online shopping, certain shops had less customers overnight.

This decision will have minimal impact on employees as Tesco will still proceed with night time activities such as refilling selves.

Four hundred staff will see a difference as the affected outlets will close between midnight and 6am, but the business said that this will not mean 400 job losses.

Stores that are affected by this have not yet been named but there are currently a total of 400 Tesco stores that open 24 hours a day.

The supermarket chain Morrisons was the first the cut diesel prices to below £1 a litre on Sunday and the other three big supermarkets also dropped prices on Monday.

Petrol, which is usually cheaper than diesel, was reduced below £1 a litre in the weeks before Christmas and these cuts show the further falls in the price of oil. Asda currently has 277 filling stations and said that it was the first supermarket to cut the price of petrol to below £1 a litre in November. Morrisons also stated this.

The price of oil is at its lowest for 11 years and Morrisons’ cuts were its cheapest since 2009. UK Brent crude oil is trading at just below $38, which is £26 per barrel. This means it lost 35% over the year.

About 75% of the price of UK fuel goes to the Treasury in duty and VAT and the remainder goes on refinery costs, distribution and the fuel retailers’ profit margins.

According to the motorists’ organisation, the forecourt price should have been cut earlier seeing as the wholesale price of diesel has been 2p lower than the wholesale price of petrol. This started a couple of weeks before Christmas and the organisation stated that more miles were driven in the UK on diesel than petrol.

Sainsbury’s is charging slightly more at 99.9p per litre whereas Morrisons, Asda and Tesco are charging 99.7p.

The discounter supermarkets Aldi and Lidl have taken another step towards victory as their joint grocery market share now stands at 10%.

Analysts Kantar Worldpanel said that Aldi’s market share was 5.6% in the 12 weeks to 8 November and Lidl’s 4.4%, showing that their joint market share has doubled in the last three years.

The discounters are on the rise but Sainsbury’s has now taken the second spot below Tesco, meaning it has had an increase in sales and is now ahead of Asda.

Sainsbury’s owns 16.6% of the UK grocery markets but Tesco still remains the UK’s largest supermarket with 27.9%.

Asda has taken a tumble as sales fell 3.5% in the latest quarter from the year before, which is more than any of its main competition. The supermarket has 16.4% of the market share.

Due to the continuous growth from the discount chains, the big four supermarkets have resulted in a price war against each other.

It could be difficult for supermarkets to compete with Aldi, whose sales rose 16.5% in the latest quarter compared to the year before, and Lidl whose sales increased 19%.

Tesco’s sales declined 2.5% from the year before while sales at Morrisons fell by 1.7% but sales at Waitrose and the Co-operative have increased.

Supermarket chain Tesco have announced a further big fall in profits.

Tesco is one of Britain’s biggest retailer but its profits have more than halved over the first half of its financial year, crashing from £779 million to £345 million.

The loss comes a week after rival supermarket Sainsbury’s forecast a better than expected full-year.  Tesco has been at a price war with other rival supermarkets and many of these chains have been hit by the rising popularity of discounters Aldi and Lidl in recent years, with their shares being eaten away by the two chains.

The new national living wage will add to costs faced by the businesses with Tesco confirming it will cost around £500 million to hike its wages to meet the £9 an hour minimum by 2020.

The Chief Executive, Dave Lewis, said that they already pay more than the £7.20 minimum wage, which is being bought in under the National Living Wage plans next April. He added that the extra staff benefits already brought its hourly rate closer to £9 an hour.

Tesco’s UK stores has reported a slower rate of decline in sales thanks to its plan to stem the number of customers choosing discounter stores such as Lidl and Aldi. The business has made progress as UK sales only fell 1.3% for the three months to the end of May, which is lower than the 4% drop a year ago.

Analysts were also proven wrong as they forecast Tesco to make a fall of 1.6%-3%. The UK result is an improvement on the 1.7% fall that was reported in the fourth quarter of the financial year.

In April, the supermarket giant reported a huge loss, making that result the worst in its history. Mr Lewis took over the helm in September and is still trying to revive the company but it will take time. It has not been a good year for Tesco and the loss it made was one of the largest in UK corporate history as it reported a full-year pre-tax loss of £6.4 billion. It also said that 43 of its stores would close because around £4.7 billion of the losses were the result of the fall in property value of its UK stores.

However, these issues are slowly being resolved and Tesco could be on the rise again.   Including its international businesses, group sales did drop 1.3% in the quarter, which is better than a 3.4% dip a year ago.

The UK’s fourth largest supermarket Morrisons is cutting its prices of 200 items by up to a third. The firm has said that many everyday products will be cut in price and this is an attempt to fight the battle between the big four supermarkets and discounter stores such as Aldi and Lidl.

Aldi and Lidl has become a main supermarket for many and Morrisons, Tesco, Sainsbury’s and Asda are paying the price for not only the rise of these discounted supermarkets, but also the rise of online shopping. Morrisons has been hit particularly hard and plans to cut the price of four pints of semi-skimmed milk by 11%, pricing it at 89p whilst also lowering the price of some bread brands by around 21%.

2014 was a bad year for Morrisons as its profits halved, which meant that this was their lowest level for eight years. Despite this, the supermarket said it would commit a billion pounds over the next three years to lowering prices, which should make consumers happy. This was a move that rival firm Asda also made, as it committed £300 million to lowering prices in the first three months of the year. Not only this, but Sainsbury’s continues to invest £150 million to reduce the cost of 1,000 products and Tesco is dropping prices on 2,500 products as well.

Compared with 2014, a typical basket of day-to-day items is now 2.1% cheaper and all the major retailers offer cheaper like-for-like goods, according to analyst Kantar Worldpanel.

Although the big four supermarkets are doing all that they can to stay in power and compete in an ever-growing market, Aldi and Lidl are gradually gaining more of the market share. Lidl has captured 3.9% of the market share, which is a new record high for the company and Aldi has increased its share to 5.4%, according to Kantar figures up to 24th May.

Tesco is expanding a scheme that gives their unsold food to charities from warehouses. Tesco is the UK’s biggest grocer and although it has not had the best of news lately, this is something that makes the supermarket stand out.

Any leftover food will be available to local charities through the UK food redistribution charity Fare Share. The food will come from 10 of Tesco’s UK stores. A lot of food was wasted last year, Tesco claimed, when those who need it could have eaten it. 55,400 tonnes of food was thrown away, 30,000 tonnes of which could have been eaten.

Since 2012, Tesco has been working with Fare Share to donate surplus food. The majority of the wastage comes from bakery items, fruit and vegetables, and convenience items such as sandwiches and salads. These foods are fresh and so it seems likely that there will be some that goes to waste.

Tesco is currently testing an app with the UK food redistribution charity Fare Share and Republic of Ireland social enterprise Food Cloud. The app allows store managers to let charities know the amount of surplus food available to them at the end of each day.

Beneficiaries will include homeless hostels, women’s refuges and children’s clubs.

In April, Tesco had the worst results in its history and ended up with a record statutory pre-tax of £6.4 billion for the year to the end of February. This compares with the year before, when it had an annual pre-tax profit of £2.26 billion.

Tesco has revealed a pre-tax loss of £6.4 billion for the year to the end of February, one of the largest in UK corporate history.

In the previous year, the supermarket giant made an annual pre-tax profit of £2.26 billion but the losses seem to be a big challenge for Tesco, giving them the worst results in its history.

About £4.7 billion of the losses that were made were the result of the fall in property value of the UK stores, with 43 of those said to close earlier this month. The decrease in value of Tesco’s property portfolio was because of the declining footfall in many of the out of town superstores.loss

This year has proven difficult for Tesco who are still being investigated by the Serious Fraud Office (SFO) because it overstated its half-year profit prediction in August by £263 million.

Compared with £3.3 billion the year before, annual group trading profit was down by 60% at £1.4 billion. This counts any sales through the supermarket’s tills.

Excluding fuel, UK like-for-like sales declined by 3.6% in the year and the company said the disappointing performance of its European stores is due to other competition. Stores in Ireland faced the biggest sales fall of 6.3% in the year.

Sales also fell in South Korea, Thailand and Malaysia. Tesco said trading profit in Asia was £565 million but once currency fluctuations were stripped out, this resulted in a 15.3% lower result than a year earlier because of the falling sales in other countries.

The only positive reaction to this was from investors who celebrated Tesco’s share price, which rose by more than 1% in early trading on the London Stock Exchange to 237.8p, however it will probably be a rollercoaster day for the company as the news sinks in.

Also See: Which? Takes action on supermarket promotions

Also See: Supermarket Sweep: The rise of the discounters

 

Hastings has welcomed a new Aldi store recently in Ore which is one of 60 that are part of the new expansion plans in the UK. As the rising supermarket celebrates its 25th anniversary in the UK, they are getting ready to take over the grocery market share and up their game against the established supermarket giants.

supermarket bannanas

The rise of discounter supermarkets such as Aldi and Lidl has changed the way consumers buy their food because every customer, no matter the demographic, is now looking not just for a cheaper alternative but a more transparent and simpler shopping experience.

The “big four” which includes Sainsbury’s, Tesco, ASDA and Morrisons have been showing a slump in sales and as a result have had to close stores to compensate for their damaged balance sheets.

Aldi’s plans are ambitious as they hope to open a further 1.02m sq ft of shop space by 2022, which equates to around 1000 stores.

The German discounter store has now become the sixth biggest supermarket in the UK after knocking the long-established business Waitrose, who is in partnership with John Lewis, off their post. Aldi now takes 5.3% of the market share whereas Waitrose has 5.1%.

The main four supermarkets are being squeezed from both ends, seeing their profits fall from high-end supermarkets such as Waitrose and Marks & Spencer attacking from the top and Aldi and Lidl from the bottom.

Aldi has gained growth as shoppers have tried out new stores to save money due to prices rising at other supermarkets.

As part of the fightback, the popular supermarket chains now offer price comparison to keep customers returning. Tesco call theirs the ‘Price Promise’ and compare against all three big supermarkets, Sainsbury’s one is ‘Brand Match’ where they only compare with ASDA who in turn call theirs the ‘Price Guarantee’ and they compare with Waitrose as well as the other three main stores. Morrisons use a ‘Match and More’ card which not only compares with the three big supermarkets, but also Aldi and Lidl.

Customers will receive coupons or money off their next shop if they could have saved money at another store.

This system only works with the top four supermarkets comparing against each other, excluding Morrisons, and this could be why customers choose the cheaper option, as they know they are guaranteed a cheaper shop.

Consumers now use Aldi and Lidl for their main weekly shop but still buy products from the larger supermarkets if the cheaper chains do not stock them.

ASDA is owned by the global discounted store Wal-Mart, who is the biggest company in the world by value, which means that the business is able to lower prices to attract customers away from Tesco and Sainsbury’s.

ASDA currently has 17.1% of the market share, still behind Tesco at 28.4% but with Tesco’s recent problems of falling profits and extra store closures, ASDA could sneak in up to top if the German discounters do not beat them to it.

Whichever way you look at it, the market is definitely changing and it’s doing so rapidly as more consumers vote with their wallets.

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