Tesco doing Badly
I watched a programme on television last night about why Tesco have gone from being the United Kingdom`s bet performing supermarket. This year Tesco are threatening to close stores and make thousands of staff lose their jobs. Apparently this is down to several different reasons. One reason is that other discount stores , discount supermarkets and poundshops have become more popular with their customers. Another reason for their downfall is that they were charging their suppliers to stock their products in the Tesco stores.
These suppliers were being charged hundreds of thousands of pounds each year for the use of Tesco shop shelves and displays. The most popular shelves in the shops are at eye level where customers can see these products before they look at anything else, these shelves were really sought after by the suppliers and Tesco were charging even more for these shelves.
All this charging for shelf space must in the end make the products more expensive surely.
Image Credit » My own