Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Tesco Empire Strikes Back, £5 off £40 Discount Voucher Spend Explained, Exclusions Warning!

ConsumerWatch / Money Saving Nov 07, 2014 - 07:18 PM GMT

By: Nadeem_Walayat

ConsumerWatch

Tesco, Britain's super market giant that continuous to implode as a consequence of a soaring debt mountain against a collapse in profits, a crisis further compounded by multiple investigations into financial irregularities by the regulator and SFO - Serious Fraud Office, appears to be going for broke by launching back to back £5 off vouchers for £40 spend on your next £40 shop offers in an attempt to reclaim its lost customers from the discount retailers.


£5 off for £40 Shop Explained

For every £40 Tesco customers spend in one transaction they will be in receipt of one £5 off voucher to spend on their next £40 shop. Therefore on face value this implies a £5 discount on a £80 spend amounting to a 6.25% discount. The current promotion runs until 9th of November, following which customers have until Sunday the 16th of November to use their vouchers else they will expire worthless.

Strategy

Clearly the strategy to maximise on the overall discount of 6.25% would be to spend just over £40 before completing each transaction so as to gain the maximum number of £5 off vouchers to utilise before the deadline of 16th November by once more repeating checkouts of just over £40.

Exclusions Warning

Unfortunately there will be many customers who whilst attempting to capitalise on the vouchers will find that they are caught out by the small print that despite spending £40 will fail to be in receipt of a printed voucher and that is as a consequence of the long list of exclusions. For instance baby milk, BABY MILK is excluded from the promotion, Why?

Apparently it's because Tesco feels it's unethical for mothers to formula feed rather than breast feed, so what about publishing bogus accounts with doctored numbers running in the hundreds millions prompting a criminal investigation? What about the ethics of that?

This means that whilst customers can get their spend at just over £40 right at checkout, however AFTER the transaction has been completed they do NOT get a voucher! And there is NO WAY BACK because the transaction has been completed!

So in reality many customers who are aiming to play the game of just spending over £40 to maximise the number of vouchers received will fail as a consequence of the long list of exclusions that many will only realise AFTER the transaction has been completed!

To help Tesco shoppers here is the official list of exclusions to be aware of as they will not count towards your shopping total in terms of securing a voucher - Infant milk formulae, tobacco products, fuel, prescription medicines, stamps, lottery, cafe, E-Top-up, savings stamps, opticians, travel money, insurance, gift cards and Paypoint.

Will the Vouchers Save Tesco?

Unfortunately history says NO, for Tesco have so to speak pressed the £5 off Voucher PANIC button many times in the past in response to bad earnings news, so I don't see why this time will be any different, all it will do is just buy Tesco some time ahead of the next bad corporate news story, though off course customers benefit form a potential 6.25% off their shops.

My earlier analysis highlighted key measures that Tesco should take to attempt to recover from the black hole that it has been sliding into.

27 Oct 2014 - Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk

What Tesco Urgently Needs to do

What Tesco needs to do is to remember they are a MARKET for goods and realise that they have fallen for the SAME mistake that ALL mega-corporations tend to make which is one of OVER SUPPLY at TOO HIGH PRICES in the face of demand that has evaporated as a consequence of being under cut by competitors with far lower cost overheads towards which Tesco's supposedly loyal customers have fled.

If I were running Tesco's this is what I would do -

Firstly, I would reorganise all of the stores along the lines of the discount retailers i.e. fewer staff, shorter opening times, and far less frills such as the club card nonsense.

Secondly, I would ONLY stock those goods that are actually in demand AND carried a hefty profit margin that were able to cover costs, so the quantity of goods offered would be greatly reduced by as much as 80% in favour of what is actually in demand at a profit.

Thirdly, I would soon seek to mothball ALL stores that were not able to operate at a profit.

Fourthly, I would either do away with the club cards points system or greatly stream line it, no more wasting countless millions sending out near worthless voucher books that waste time at checkouts and most of which eventually get binned by customers. They only work in the fantasy land of head office, the staff and customers don't like the voucher books ! Better would be an automatic 2% or 3% off the next shop as an encouragement to return.

Fifthly, I would sell off assets abroad such as asia which could be utilised to pay down Tesco's debt mountain before it starts to explode exponentially.

Sixthly, I would go to the shareholders with a plan to reduce the debt mountain, but this can only work IF the earlier measures had been able to bring a halt to Tesco's profits slide.

Unfortunately, I doubt that Tesco's bloated over educated under real world experienced management are competent enough to do what needs to be done who rather than take action may just hope things turn around whilst they play with their spreadsheets producing fancy graphs based on bogus figures, therefore it may already be too late to save Tesco from going bust. Though most probably Tesco is probably now ripe for a hostile takeover as breakup could yield a return of at least £5 billion over total debt and liabilities.

At the end of the day, the likes of Tesco killed off much of Britians high streets and given the law of supply and demand Tesco itself being killed off by the discount retailers today, many of whom will in turn be killed off when customers start to realise the amount of chemical crap that goes into their food products!

The bottom line is it is not too late to save Tesco if urgent action is taken as indicated above. But the Tesco that emerges will not be the same, much leaner and meaner.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2014 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules