Omega Owners Forum

Please login or register.

Login with username, password and session length
Advanced search  

News:

Welcome to OOF

Pages: 1 [2] 3  All   Go Down

Author Topic: Lizzie, please explain.....  (Read 4886 times)

0 Members and 1 Guest are viewing this topic.

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #15 on: 16 September 2018, 11:36:52 »

BOGOF

Yes, that is right. :y :y

It is all driven by volume; how many units the retail company has purchased, probably many tens of thousands across their empire, at a unit price that allows for such a seemingly crazy offer that you, and everyone else, starts talking about and the retailer hopes will drive thousands of customers into their stores!

It is great marketing that 'tells' the customer this retailer gives them 'fantastic offers', with two units being 'given away' for the price of one, so what other promotions are on offer in store?  In fact they retailer has negotiated a unit price from the supplier that still gives them a great profit over the tens of thousands that will be sold when each is sold for just £2.50.  The all important customers are happy and so is the retailer as other products are sold on the back of the extra footfall. That gives any retail company the yearly growth the business must generate to remain competitive and viable.

Smoke and mirrors Ron, smoke and mirrors!! ;D ;D ;)

With Poundland and the like it is still a big increase on "everything being £1"!!  That is one reason why Poundworld and many 99p stores have gone to the wall. ;)

Well said and explained Lizzie  :y But of course this is all driven by the marketing people, and they do not always get things right.

I'm in the wine trade. I recently saw wine in Lidl at £2.99 a bottle

Minus VAT = £2.49

Minus Excise duty = £0.32

Trust me at .32p per bottle nobody is making any money, not even the empty bottle manufacturer

I recently met a senior manager from Lidl. He had no idea that excise duty was £2.17 per bottle. I just wonder ??????

Yes, it is not a lot per unit.  But in multiple retailing it is all about just that; multiplication.

That 32p per bottle turns into x12 per case, x 30 cases per store (probably a very big underestimate!) x 10,000 stores that Lidl operate worldwide = £792.000 for just one simple product.  Then you take into account that Lidl run their stores with minimal staffing, so keeping the major selling expense of the wage bill at the lowest level, whilst putting out unpacked cases of product direct onto the shop floor.  Then as I stated before, there is the pulling power of the promotion that will continue to draw in the regular and, they hope, extra custom that will give the company year on year growth.  Like Aldi, Lidl specialise in giving the customer the cheapest possible deal, regardless of product source and quality, which they promote very aggressively through TV and general media advertising.  That is why their market has been growing fast, but their profits have been hit, in part by increased staffing costs, store expansion, but also by their marketing policy.  The cost of selling cheap and fighting, in Britain at least, the other big 4 supermarket chains will ALWAYS  effect these retailers profits in the long term, like it affects all retailers who try it.  My old company Chairman always did use as a manta the message "you cannot buy sales" and he was absolutely right.

Any retailer who ignores the need to make profit their number one target is in real danger of going out of business, just as so many have in the past. ;)
« Last Edit: 16 September 2018, 11:39:54 by Lizzie Zoom »
Logged

BazaJT

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Male
  • SLady bitshorpe N.Lincs.
  • Posts: 9086
    • Omega 3 litre Elite
    • View Profile
Re: Lizzie, please explain.....
« Reply #16 on: 16 September 2018, 12:00:07 »

It was on the news the other day that Tesco are planning on opening some "cheap" supermarkets to take on the likes of Aldi/Lidl.Working name so far for these new stores is Jacks,although that may change before opening.
Logged

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #17 on: 16 September 2018, 12:17:57 »

It was on the news the other day that Tesco are planning on opening some "cheap" supermarkets to take on the likes of Aldi/Lidl.Working name so far for these new stores is Jacks,although that may change before opening.

Yes, Tesco and the others of the big 4 are running scarred of the Aldi and Lidl threat, but they must keep their eye on those essential profits.  The shelf life of these "cheap stores" may not be a long one as the balance between giving the customer what they want, with great service standards, and making that profit is a fine one and can soon tip into non-viability.  Time will tell. ;)
Logged

Varche

  • Omega Queen
  • *****
  • Offline Offline
  • Gender: Male
  • middle of Andalucia
  • Posts: 13621
  • What is going to break next?
    • Golf Estate
    • View Profile
Re: Lizzie, please explain.....
« Reply #18 on: 16 September 2018, 14:38:00 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
Logged
The biggest joke on mankind is that computers have started asking humans to prove that they aren’t a robot.

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #19 on: 16 September 2018, 15:32:14 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?

No, not necessarily.

It is about Sainsbury's at the upper / middle class end of the supermarket world securing a market at the lower end, so they can both benefit from a wider customer mix and gain the all important extra margins by upping their buying power, which just may mean Sainsbury's can reduce their retail prices to fight Lidl and Aldi and stay in the game.  ;)
Logged

ronnyd

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Male
  • Bury St Edmunds Suffolk
  • Posts: 8591
    • Vectra 1.8 SRI Silver
    • View Profile
Re: Lizzie, please explain.....
« Reply #20 on: 16 September 2018, 15:46:26 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
Logged

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #21 on: 16 September 2018, 15:54:04 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D

Indeed, they are doing that all over and by doing so they are increasing the footfall into their stores, fully absorbing the online potential of Argos which they will develop to include the Sainsbury's offer, whilst cutting the cost of the Argos operation by closing their smaller retail stores.  Strategically a very clever move, that will only get better with the coming on board of Asda and the further development of the now essential online business. ;)
Logged

TheBoy

  • Administrator
  • *****
  • Offline Offline
  • Gender: Male
  • Brackley, Northants
  • Posts: 105837
  • I Like Lockdown
    • Whatever Starts
    • View Profile
Re: Lizzie, please explain.....
« Reply #22 on: 16 September 2018, 15:59:36 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Logged
Grumpy old man

ronnyd

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Male
  • Bury St Edmunds Suffolk
  • Posts: 8591
    • Vectra 1.8 SRI Silver
    • View Profile
Re: Lizzie, please explain.....
« Reply #23 on: 16 September 2018, 16:02:55 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Yeah, have a Morrisons instead. :y
Logged

Doctor Gollum

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • In a colds and darks puddleses
  • Posts: 28089
  • If you can't eat them, join them...
    • Feetses.
    • View Profile
Re: Lizzie, please explain.....
« Reply #24 on: 16 September 2018, 16:04:15 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Not necessarily...

https://m.thegrocer.co.uk/566476.article?mobilesite=enabled ;)
Logged
Onanists always think outside the box.

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #25 on: 16 September 2018, 16:43:35 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Not necessarily...

https://m.thegrocer.co.uk/566476.article?mobilesite=enabled ;)

There you go, that piece basically covers what I was explaining.  A great move, but maybe not for suppliers, as with extra buying power will come a squeeze on them (as it always has been!) :D ;)
Logged

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #26 on: 16 September 2018, 16:45:34 »

Lidl and Aldi have been around a long time.

Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.

When the next crash comes they will be well placed.


What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)

No, as I stated it is about Sainsbury's at the upper / middle class end of the supermarket world securing a market at the lower end, so they can both benefit from a wider customer mix and gain the all important extra margins by upping their buying power, which just may mean Sainsbury's can reduce their retail prices to fight Lidl and Aldi and stay in the game.  ;)
Logged

Field Marshal Dr. Opti

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • Utopia
  • Posts: 31558
  • Speaking sense, not Woke PC crap
    • View Profile
Re: Lizzie, please explain.....
« Reply #27 on: 16 September 2018, 16:50:09 »

Lizzie remember a time when nothing from Woolworth cost more than 6d (a tanner) :) :-* :-*
Logged

Lizzie Zoom

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Female
  • South
  • Posts: 7370
    • Omega 3.2 V6 ELITE 2003
    • View Profile
Re: Lizzie, please explain.....
« Reply #28 on: 16 September 2018, 18:39:17 »

Lizzie remember a time when nothing from Woolworth cost more than 6d (a tanner) :) :-* :-*

Yep, and after they had to abandon that great USP, plus cease to look like Woolworth's should, the game was over.  They became just another store without any place in the ultra competitive retail market and their customer base disappeared.  Just like with recent retail casualties :'( :'(
Logged

Varche

  • Omega Queen
  • *****
  • Offline Offline
  • Gender: Male
  • middle of Andalucia
  • Posts: 13621
  • What is going to break next?
    • Golf Estate
    • View Profile
Re: Lizzie, please explain.....
« Reply #29 on: 16 September 2018, 21:29:51 »

Lidl cheapness does NOT mean low quality.

I could give you a shed load of examples but in the first instance point you at their Wines.

Logged
The biggest joke on mankind is that computers have started asking humans to prove that they aren’t a robot.
Pages: 1 [2] 3  All   Go Up
 

Page created in 0.032 seconds with 22 queries.