TESCO TRUTHS

Further to our previous two blog on Tesco’s VAT pricing scandal, word is, that Tesco is now expecting stores to completely change all of the relevant prices before 9am Monday!  Again, the Tesco hierarchy stands accused of treating their customer like fools (assuming that we would not actually realise that we are being overcharged)  and once again, Tesco staff will be put under even more pressure to complete the task, a pressure not sure by the persons responsible for this monumental cock-up.  In true Tesco style – no investment has been put into completeing this task,  no extra hours, no opportunity to pay overtime – just the usual – get on with it!

Most interestly is the continued refusal to put the work onto the PID workload screen – this allows H/O and the Store Manager to ascertain if and when the task has been completed. . . . and as previously refferred to , this screen produces the Due Diligence legal paperwork, this means that there will be absolutely no papertrail for this entire activity!

The usual series of messages have been coming down via the SM’s Email system and the Compliance managers “Workplan”,  perhaps the biggest message that the SM’s should send back is the adage “Proper Preparation Prevents Piss-Poor Performance” – Increasinging centralisation (stores cannot even order their own stock any more!) and the obvious out-of-touch teams within the ivory towers at Cheshunt, truly show that Tesco is an arrogant, task focussed retailer, struggling to maintain its performance.  We can only hope that the press now begins to report properly on some of the dubious tactics employed by TESCO…………

Some Price Examples:

“Tesco claimed yesterday to be freezing the price of Fairy non-biological at £4.50 as part of a “£12 million VAT freeze” on thousands of products. However the data shows that the non-biological washing powder was selling for £4 in October!”

“Tesco (this month) increased 500 prices in bedding, cooking equipment, crockery and other items that are subject to VAT by similar amounts.”

“Tesco  increased the price of 1,577 popular items – some 6.3 per cent of its range – in December.”

“Britain’s biggest supermarket Tesco has said it will increase VAT on fuel,”

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Now we all know that the Pricing infrastructure at Tesco’s is, at best shoddy – at worst, illegal in hundreds of stores EVERY DAY.  PI Deparments are consistantly undermanned, price changes are not loaded correctly at head office, PID staff used to fill Fresh foods – the reasons are endless BUT all result in the same illegal status which affects a good majority of Tesco stores every day.  Tesco management & board are aware (and have been for years) of the problem – yet until the Local Authorities start to actually take action . . . . . why should they change this?

Imagine being a Compliance Manager (the manager responsible for the legality and pricing in stores) this week…….  As always, Tesco have managed to completely muddy the waters with how they intend to deal with the VAT increase. Sainsburies have been transparent and told us what would be increasing and what would not . . . .  ASDA have announced that all their relevant goods would be repriced immediately (extra investment and planning has been made available to achieve this) , compare this with Tesco:

“Tesco said it would freeze VAT at 15 per cent on ‘thousands of products’ to deliver £12million of savings. But prices will rise for many other products.

Richard Brasher of Tesco said: ‘The VAT reduction was a welcome relief for millions of shoppers and helped many continue to treat themselves over Christmas. We want to extend this help into the New Year and hope consumers will feel able to bag a bargain and get 2010 off to a great start.’  “

So thats clear then!  Somethings will be increased, some won’t – we just are not going to tell you!!!  And this does not just apply to the shoppers,  Compliance Managers are still unaware of the changes which they will be responsible for implementing, no indication of the workload OR when it will be actioned!  Factor-in the usual lack of investment for the task and we can expect to see the usual chaos.  SO  as  always, make sure you check your reciept should you dare to shop at Tesco’s !!

“  The UK’s biggest retailer said the move would save customers £12m, although it said the duration of the freeze would vary between individual lines and it did not specify how long it would last.”

UPDATE:

Tesco have now admitted that prices will be different in different stores, dependant on demographics and format . . . . .   This is surely proof that this is a marketing gimmick, are Tesco shoppers really happy that they may be paying more than Tesco shoppers who simply live elsewhere?

Of Course  Tesco Extra Shoppers  have been contantly assured of the “VAT PRICE FREEZE” on the Promotional aisle immediately at  Xmas – as visible on all the Point Of Sale….  which was good of Tesco – the VAT doesn’t increase until New Year anyway!!!

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