August 31, 2008
Tesco is to change the wording on their tills.
The supermarket giant is to replace its current “10 items or less” notices with signs saying “Up to 10 items”.
Tesco’s move follows uncertainty over whether the current notices should use “fewer” instead of “less”.
August 29, 2008
BBC reports on how supermarkets in their battle for customers are using school uniforms as a marketing tool.
For the last few years, the supermarkets have been competing on price.
This year Asda stole a march by offering the £4 uniform for all ages, rather than a budget range simply for the youngest pupils, according to retail analyst Maureen Hinton, of Verdict Research.
Even if the best deals are now gone, most parents will be able to come away with change from £10 when buying a sweatshirt, trousers or skirt, and polo shirt ensemble.
For example, a sweatshirt for a three to 12-year-old from any of Sainsbury’s, Tesco or Asda will usually cost parents no more than £2.50.
July 22, 2008
Is this a response to changes in the business environment or simply a marketing ploy?
Retailers Asda, Morrisons and Sainsbury’s have all said they will lower the price of petrol, prompted by falling oil prices.
July 4, 2008
Are you the kind of shopper that supermarkets love, the type who always shops at the same supermarket on a regular basis?
Tesco, Morrisons, etc… love you, as you are often more loyal to them then your employer or even your family!
Well the BBC reports that in these times of economic turmoil, the days of the loyal supermarket shopper may be coming to an end as we become more price sensitive.
Many supermarket-goers are wedded to their brand of shop. But as people begin to draw in the purse strings, some are starting to see benefits in being a more promiscuous consumer.
Evidence suggests once loyal shoppers, who in the past have been faithfully wedded to a single supermarket brand, are starting to experiment with younger, cheaper models.
However will these changing habits last? According to the article, no.
…as shoppers have more money again they will revert to old habits.
These surveys are a great demonstration of how changes in income effect the demand for groceries. As incomes fall (due to increased costs), the demand for luxury goods (ie Waitrose or Marks and Spencers) will fall (shift to the left); whilst the demand for basic (cheap) goods (ie lidl or aldi) will rise (shift to the right).
We can also use demand and supply analysis to explain the recent rise in food prices, by shifts in the supply curve.
More links on supermarkets.
June 30, 2008
The BBC reports on how Tesco responding to political and consumer pressure it to no longer source products from Zimbabwe.
Supermarket chain Tesco has announced it will stop sourcing products from Zimbabwe while “the political crisis persists” there.
The retail giant buys around £1m ($1.9m) worth of goods, including vegetables, from Zimbabwe.
Tesco said it was looking for other ways to support workers there.
This is an example of how in the business environment, political and consumer pressures can force business organisations to change the way in which they do business.