Obviously, with Tesco failing to track the price changes, the stores have had to set-up their own trackers – the concern is that no-where near the expected quantity of labels had been sent,  many departments have completed some price verification routines today on affected areas,  we have recieved faxes of paperwork showing PV routines showing price discrepancies of more than 67% on one mod alone! – i.e over half of  all price labels on one area alone is incorrect!!,  Compliance managers are concerned that Tesco’s Head Office have managed to pass the problem to stores and that all the flak will be directed at the PI departments rather than the H/O staff responsible for this farce!!

“Traders are required to display clearly their prices inclusive of VAT. For a period up to 14 days, they are permitted under the Price Marking Order 2004 (SI 2004/102) to let consumers know, by way of a general notice, that an adjustment in price, to take account of the VAT change, will be made at the till.”

The Order was amended in December to give 28 days for price changes.”

THIS DOES NOT GIVE TESCO’s THE RIGHT TO OVERCHARGE DUE TO POOR PRICE INTEGRITY HEAD OFFICE POLICIES.

We look forward to recieving more details from you all in the next week!!

Social & Share me

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!!!

Social & Share me