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Tesco pulls plug on Thailand bulk business as UK sales grow


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Tesco pulls plug on Thailand bulk business as UK sales grow

by: Mark Vandevelde and Nicholas Megaw

 

tesco.PNG

 

Supermarket group renews focus on British convenience grocery market

 

Tesco has shut down a “bulk selling” operation in Thailand after concluding it could not make a profit.

 

The decision to walk away from nearly 6 per cent of Asian revenue contributed to a 3 per cent decline in like-for-like sales at Tesco’s international business, taking the gloss off a sixth consecutive quarter of growth driven by price rises and volume growth in the UK.

 

Dave Lewis, chief executive, said the shuttered Thai unit served independent merchants rather than individual consumers, and sold “large volumes [of] mainly tobacco and alcohol”. 

 

Full story: https://www.ft.com/content/5499cf8c-5266-11e7-bfb8-997009366969

 

FINANCIAL TIMES: 2017-06-17

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Tesco is by far the worst supermarket chain in the country. It consistantly runs out of stock and often for weeks at a time. It is clearly managed by incompetants and this is reflected in their floor staff who obviously have had no training and rarely know where items are when asked.

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2 hours ago, Wim1954 said:

At Tops supermarket for your quality beef and more.

 

That would be OK if you live close to a Tops, Foodland or Villa but not everybody does.

 

My nearest Tops is in Phitsanulok 180 km away, Foodland or Villa is either BKK or CM about 400km in opposite directions.

 

Tesco is either a very small one in Khampaeng Phet 65km away or a bigger one at Salok Bat 70 km the other way or perhaps Nakhon Sawan 125 km away.

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Tops upcountry hardly have US Beef anymore. This found it too expensive ,and not many Ferang customers .The last reason may be true,but when I got to the Meat section by 12ish all the best stuff had gone,bought by Thais.


Sent from my iPhone using Thaivisa Connect

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5 hours ago, billd766 said:

 

That would be OK if you live close to a Tops, Foodland or Villa but not everybody does.

 

My nearest Tops is in Phitsanulok 180 km away, Foodland or Villa is either BKK or CM about 400km in opposite directions.

 

Tesco is either a very small one in Khampaeng Phet 65km away or a bigger one at Salok Bat 70 km the other way or perhaps Nakhon Sawan 125 km away.

Do you live in a 1 house village in the middle of nowhere?

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As someone from the UK I used to shop regularly at Tesco Lotus. I stop using them as they never ever paid me the discount coupons I was entitled to. Friends who also use them never always get the discounts. By not using them they lose more than what they owe me.

 

Trying to find someone at customer service at Tesco who speaks English is impossible. At Big C there is usually at least 2 staff on duty who can.

 

I now use Big C, Topps and Rimping. Eventually I will even get round to using Makro. If a business is crooked, don't use it! 

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2 hours ago, William C F Pierce said:

Do you live in a 1 house village in the middle of nowhere?

 

No. There are about 50 houses in the moo ban (Thai) strung along the road.

 

However it is situated in Nakhon Nowhere 6 km from the nearest 7/11 and the only bank.

 

There is little or no pollution, traffic jams are only for 2 or 3 minutes on market days and we live on 15 rai with plenty of space for the kids to play in.

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1 hour ago, kimamey said:

More to the point was it that quiet when he moved there?

 

Yes it was and in the beginning my neighbours were about 500 metres away. Now they are next door on both sides. They are Thais and good friends of ours.

 

AFAIK I am the only full time expat living here for about 6 km in any direction.

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12 hours ago, tigermoth said:

Tesco is by far the worst supermarket chain in the country. It consistantly runs out of stock and often for weeks at a time. It is clearly managed by incompetants and this is reflected in their floor staff who obviously have had no training and rarely know where items are when asked.

 

Totally agree, but Lotus is also the cheapest.

 

 

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On 2017-6-18 at 8:56 AM, tigermoth said:

Tesco is by far the worst supermarket chain in the country. It consistantly runs out of stock and often for weeks at a time. It is clearly managed by incompetants and this is reflected in their floor staff who obviously have had no training and rarely know where items are when asked.

You could say that exact sentence about almost every single business in Thailand... 

 

Most employees are incompetent, lazy, disinterested or rather play on Facebook than learn how to improve customer service skills... 

 

There are a few exceptions , but that's what they are, exceptions.... 

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On 2017-6-18 at 6:45 PM, William C F Pierce said:

As someone from the UK I used to shop regularly at Tesco Lotus. I stop using them as they never ever paid me the discount coupons I was entitled to. Friends who also use them never always get the discounts. By not using them they lose more than what they owe me.

 

Trying to find someone at customer service at Tesco who speaks English is impossible. At Big C there is usually at least 2 staff on duty who can.

 

I now use Big C, Topps and Rimping. Eventually I will even get round to using Makro. If a business is crooked, don't use it! 

 

Losing you and your coupons must have really hit  them hard in the pocket.... Probably had to lay off some staff and cut wages :biggrin:

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1 hour ago, speedtripler said:

 

Losing you and your coupons must have really hit  them hard in the pocket.... Probably had to lay off some staff and cut wages :biggrin:

Your English comprehension is seriously lacking in not understang what I wrote. The last time i visited Thailand for a couple of months I spent over 150,000 Baht. bought a new fridge freezer, a large new TV and Kitchen equipment. None of it was bought at Tesco. That is what they lost and their profit loss was more than what they owe d me. Try learning some maths as well!

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8 hours ago, William C F Pierce said:

Your English comprehension is seriously lacking in not understang what I wrote. The last time i visited Thailand for a couple of months I spent over 150,000 Baht. bought a new fridge freezer, a large new TV and Kitchen equipment. None of it was bought at Tesco. That is what they lost and their profit loss was more than what they owe d me. Try learning some maths as well!

Incoming Recession  then? ;)

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Quote

Dave Lewis, chief executive, said the shuttered Thai unit served independent merchants rather than individual consumers, and sold “large volumes [of] mainly tobacco and alcohol”. 

 

Since their bulk operations seemed to focus on tobacco and alcohol products to merchants I expect with increasing taxes on those products which usually results in lower sales Tesco decided the profit margin was no longer good enough.

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"The decision to walk away from nearly 6 per cent of Asian revenue contributed to a 3 per cent decline in like-for-like sales at Tesco’s international business, taking the gloss off a sixth consecutive quarter of growth driven by price rises and volume growth in the UK."

 

Tesco are at risk of shooting themselves in the foot by placing all their eggs in the British market, I think! Are they really so confident that volume growth in the UK will be sustained given Brexit and all that?

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On 2017-6-18 at 9:32 PM, billd766 said:

 

Yes it was and in the beginning my neighbours were about 500 metres away. Now they are next door on both sides. They are Thais and good friends of ours.

 

AFAIK I am the only full time expat living here for about 6 km in any direction.

Good neighbours are worth looking after.  Don't want them moving,  you may not be so lucky in future.  That applies anywhere. 

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