Boycott Tescos?

[Mark]

Do people really feel that strongly about a supermarket chain's practices that they actively boycott it? Anyone here partake in a bit of abstention?

[fantasycouriers]

I haven't been to Tescos for about 3 years. Out of choice.
Don't think they've noticed though!!

[Paul Norman]

I guess if I knew for sure of unethical practises i might....

[BITS]

Yeah sure I would as long as there was somewhere else to go.

[CFUK]

In a similar vein my wife and I have chosen not to eat at a well known fast food restaurant chain. Not through any wrongdoing of theirs, but purely because in between moving houses a few years ago and short of time we ate their far too often. A conscious decision was made to 'not eat there again for a while' and now more than 2 years on we cannot bear to think about going back again. No cravings, nothing...

As for supermarket chains, we try and shop where we get 'value for money'
No supermarket chains are squeaky clean and I would need hard concrete evidence to sway me from shopping at a supermarket ever again.
There are some I avoid due to the types of people who are their main clients but on occasions I will shop at them to get products that are value for money.

[Paul Norman]

Good post! That was my point, really. If I had concrete evidence of non ethical behaviour I would consider boycotting.

But where would we all draw the line? Some chains, (nameless, but not Tesco) which would be regarded as operating at the quality end of the game have a supplier payment policy that would make your eyes water. Would this make you boycott them?

[uglydoll]

Originally Posted by fantasycouriers

I haven't been to Tescos for about 3 years. Out of choice.
Don't think they've noticed though!!

I'm still unclear what it is Tesco has done to be considered unethical? Two new stores have just opened in my town, and quality-wise are superior to anything else around us, so I won't be giving them up unless there's a really compelling reason.

[OldWelshGuy]

Within 8 miles or so on easy access roads we have :-
Asda
3 Tesco stores, including 2 huge tesco extra stors
Sainsbury
Morrisons
and loads of other aldi, Lidl etc

So we are spoilt for choice really, but we choose Asda for our main shop, mostly down to the professionalism of the staff, and the real easy way they mark their offers etc

We also go to Tescos regulrly (as in 2 or 3 times a week), same with Morrisions. Sainsbury's is a PITA to be blunt, snooty unhelpful staff, so go there infrequently.

[Mat]

Originally Posted by uglydoll

I'm still unclear what it is Tesco has done to be considered unethical? Two new stores have just opened in my town, and quality-wise are superior to anything else around us, so I won't be giving them up unless there's a really compelling reason.

Ditto. I want the most bang for my buck, and whilst Tesco can provide that, I'll shop with them. I'd only boycott a store if there was a very good reason (e.g. they'd been funding the taliban).

[OldWelshGuy]

tescos have been accused of using unethical tactics on their suppliers, as in forcing them to supply goods at a price that actually costs the suppliers money to supply. They make demand for offers (reduced prices) that the supplier has two options
1. agree and supply at a loss
2. refuse, and be removed from the suppliers list.

In effect tesco blackmail and bully suppliers, including local farmers etc. I would like to see the OFT getting involved rather than boycotting.

[Mat]

Originally Posted by OldWelshGuy

tescos have been accused of using unethical tactics on their suppliers, as in forcing them to supply goods at a price that actually costs the suppliers money to supply. They make demand for offers (reduced prices) that the supplier has two options
1. agree and supply at a loss
2. refuse, and be removed from the suppliers list.

In effect tesco blackmail and bully suppliers, including local farmers etc. I would like to see the OFT getting involved rather than boycotting.

Some may call it unethical, but why would any business pay more for goods than it had to? For this situation to occur, there are obviously too many players amongst the suppliers.

I tend to go with the belief that, left alone, these things will eventually sort themselves out. After all, Tesco's tactics can't last forever.

However, in this case we risk losing a valuable industry, so I agree - The OFT should deal with it (where British suppliers are involved).

[OldWelshGuy]

What they do is agree a contract with a farmer, fix a price, then after the goods are supplied, they make a payment which is reduced and says along the lines of 25% discount taken. payment completed. They then pay 75% of the value of the invoiced amount. if the supplier complains they are told those are the terms, live with it or leave.

The supplier can't afford to be dropped as a supplier so they have to live with it.
It is a disgusting modus operandi and the OFT need to step in. Currently they say they will not as it is a dispute between the supermarket and the supplier. personally I think ist goes beyond that.

[Mat]

Originally Posted by OldWelshGuy

What they do is agree a contract with a farmer, fix a price, then after the goods are supplied, they make a payment which is reduced and says along the lines of 25% discount taken. payment completed. They then pay 75% of the value of the invoiced amount. if the supplier complains they are told those are the terms, live with it or leave.

The supplier can't afford to be dropped as a supplier so they have to live with it.
It is a disgusting modus operandi and the OFT need to step in. Currently they say they will not as it is a dispute between the supermarket and the supplier. personally I think ist goes beyond that.

Can't the farmer take debt recovery action?

[OldWelshGuy]

Indeed they can, BUT they are then instantly taken off the tesco supply list and will be left with their product and nowhere to sell them. That is why so many people are up in arms over the way tesco behave. Others are quite tough, but tesco is notorious for this behaviour.

[handbaghabit]

Originally Posted by OldWelshGuy

tescos have been accused of using unethical tactics on their suppliers, as in forcing them to supply goods at a price that actually costs the suppliers money to supply. They make demand for offers (reduced prices) that the supplier has two options
1. agree and supply at a loss
2. refuse, and be removed from the suppliers list.

In effect tesco blackmail and bully suppliers, including local farmers etc. I would like to see the OFT getting involved rather than boycotting.

Tesco are not the only ones to do this there was a big stink lately in one of the trade mags about several chains that are putting suppliers under an incredible pressure demanding lower prices or in the case of Matalan refusing to pay on the agreed date so they could launch a TV advertising campaign. Quite frankly I find this a disgusting practice and it does put me off shopping with them.

[Mat]

Originally Posted by OldWelshGuy

Indeed they can, BUT they are then instantly taken off the tesco supply list and will be left with their product and nowhere to sell them. That is why so many people are up in arms over the way tesco behave. Others are quite tough, but tesco is notorious for this behaviour.

Thanks for the explanation. Refusing to do business with suppliers who ask for payment in full is certainly not right.

[Dot Design]

ttp://uk.youtube.com/watch?v=sJZAQIid4t0

[OldWelshGuy]

that is a quality vid

[uglydoll]

An eye-opener. But as stated previously, I bet they're not the only ones. Do we boycott all supermarkets?

[Dot Design]

Its is that, but are Tesco's being unfairly targetted, even if it is true, what about Sainsburys, Morrisons etc etc, they must be doing similar?

[Mat]

I believe any decision made should be emotionless and made to protect British interests. In the current economic climate, reducing the profitability of a UK company to be nice to foreigners doesn't make a lot of sense.

[trogette]

It's not just foreigners who suffer, it's UK farmers. FWIW, a farming friend/client told me last year that Morrisons, Waitrose, Co-op and, I think, Sainsburys pay current market prices for their meat rather than having a contract in place.

There are lots of reasons why supermarkets are bad news for local economies but there are far too many 'I'm alright Jack' type people for the message to sink in.

[GeorgeM]

The current recession may cause the squeeze on prices paid to suppliers getting worse.

But since the big 4 supermarkets dominate food shopping I don't see that situation changing.

The only way to change the situation would be to have more competition in the supermarket sector - from companies like Aldi and Lidl.

The Competition Commission recently investigated this sector and has made recommendations to improve the position of suppliers. Here's an extract from their report in April 2008 relating to suppliers :

Supply chain practices
Establishing a Groceries Supply Code of Practice (GSCOP), based on the existing SCOP, but amended such that:
• All retailers controlled by corporate groups with UK retail groceries turnover in excess of £1 billion a year are included within its scope.
• An overarching fair dealing provision is included.
• Retailers are prohibited from making retrospective adjustments to terms of supply.
• Retailers are prohibited from entering into arrangements that result in suppliers being held liable for losses due to shrinkage.
• Retailers are required to enter into binding arbitration to resolve any dispute with a supplier under the GSCOP.
• Retailers are required to provide notice of and reasons for de-listing suppliers or significantly reducing suppliers’ business.
• Retailers are required to establish an in-house compliance officer responsible for compliance with the GSCOP, with a direct reporting line to the audit committee (or non-executive director).
• Retailers are required to keep written records of all agreements with suppliers on terms of supply.
• Retailers are required to provide to the body monitoring and enforcing the GSCOP such information as it may reasonably require in pursuit of its functions.

Link to report summary - http://www.competition-commission.or.../pdf/14-08.pdf

Tesco to create 10,000 jobs - http://news.sky.com/skynews/Home/Bus..._Sales_Figures

[Mat]

Originally Posted by GeorgeM

Supply chain practices
Establishing a Groceries Supply Code of Practice (GSCOP), based on the existing SCOP, but amended such that:
• All retailers controlled by corporate groups with UK retail groceries turnover in excess of £1 billion a year are included within its scope.
• An overarching fair dealing provision is included.
• Retailers are prohibited from making retrospective adjustments to terms of supply.
• Retailers are prohibited from entering into arrangements that result in suppliers being held liable for losses due to shrinkage.
• Retailers are required to enter into binding arbitration to resolve any dispute with a supplier under the GSCOP.
• Retailers are required to provide notice of and reasons for de-listing suppliers or significantly reducing suppliers’ business.
• Retailers are required to establish an in-house compliance officer responsible for compliance with the GSCOP, with a direct reporting line to the audit committee (or non-executive director).
• Retailers are required to keep written records of all agreements with suppliers on terms of supply.
• Retailers are required to provide to the body monitoring and enforcing the GSCOP such information as it may reasonably require in pursuit of its functions.

Phrases such as "in-house compliance officer" usually make my blood boil, but the above recommendations actually seem quite sensible and should stop these practices from happening.

[altyfc]

I don't boycott Tescos (I have shares in them!) but I do "boycott" shops in my own little way if I feel agrieved at something (eg. poor service/quality).