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Tesco-man David Lewis goes into battle for the consumer again, just in time for the Black Friday rush | Tesco-man David Lewis goes into battle for the consumer again, just in time for the Black Friday rush |
(about 4 hours later) | |
Is it a bird? Is it a plane? No, it’s Tesco-man, flying to the defence of the British consumer! Worried about inflation? Never fear, Tesco-man is here to battle multi-national super-villain suppliers! | Is it a bird? Is it a plane? No, it’s Tesco-man, flying to the defence of the British consumer! Worried about inflation? Never fear, Tesco-man is here to battle multi-national super-villain suppliers! |
Yes, Tesco chief executive David Lewis is at it again. Having won the battle of the Marmite jar with his erstwhile employer Unilever, Mr Lewis has issued a warning to other suppliers who might be tempted to use Britain’s Brexit weakened currency as an excuse to raise prices. He’s not going to allow it. | Yes, Tesco chief executive David Lewis is at it again. Having won the battle of the Marmite jar with his erstwhile employer Unilever, Mr Lewis has issued a warning to other suppliers who might be tempted to use Britain’s Brexit weakened currency as an excuse to raise prices. He’s not going to allow it. |
Well, he’s not going to allow it unless price increases are “justified”. But, then, Superman only ever fought Lex Luthor when it was justified, didn’t he? | |
Actually, teasing aside, Mr Lewis has raised a worthwhile point. Multinationals like Unilever are able to manage their businesses to take account of movements in the currency markets. | Actually, teasing aside, Mr Lewis has raised a worthwhile point. Multinationals like Unilever are able to manage their businesses to take account of movements in the currency markets. |
It is now common practice for them to report adjusted earnings figures designed to show how they would have done had currencies been constant, in addition to providing a raw figure. | It is now common practice for them to report adjusted earnings figures designed to show how they would have done had currencies been constant, in addition to providing a raw figure. |
Mr Lewis has suggested that suppliers wouldn’t make customers in other countries pay extra for temporary periods of currency weakness, and so the same should be true for Brits. Thanks Tesco-man! | Mr Lewis has suggested that suppliers wouldn’t make customers in other countries pay extra for temporary periods of currency weakness, and so the same should be true for Brits. Thanks Tesco-man! |
Just one question: What if Brexit induces a long term weakness (highly probable) in the pound? Will that allow Unilever to impose a “justified” price increase in a jar of marmite? Tesco-man doesn’t say. | |
He doesn’t need to really, because this isn’t solely about Tesco battling suppliers on behalf of its customers. | |
Call me a cynic, but notice the timing of Mr Lewis’s latest punchy statements. They come just as Tesco prepares for the Black Friday scrum, givng the retailer a nice bit of positive PR momentum leading into it. | Call me a cynic, but notice the timing of Mr Lewis’s latest punchy statements. They come just as Tesco prepares for the Black Friday scrum, givng the retailer a nice bit of positive PR momentum leading into it. |
Good PR is something Tesco could do with in the wake of the Tesco Bank cyber fraud and with the Serious Fraud Office nearing the end of a long running investigation into the black hole in the retailer’s accounts prior to Mr Lewis joining. | Good PR is something Tesco could do with in the wake of the Tesco Bank cyber fraud and with the Serious Fraud Office nearing the end of a long running investigation into the black hole in the retailer’s accounts prior to Mr Lewis joining. |
Now would therefore be very good time to remind shoppers of the incumbent chief executive’s super hero secret identity, no? | Now would therefore be very good time to remind shoppers of the incumbent chief executive’s super hero secret identity, no? |
Personally I’d be a little more willing to believe the Tesco-man hype were Mr Lewis to make some similarly punchy public statements about the subtler ways multi-nationals have been sneaking through price rises, via the deflation in the sizing of their products. | Personally I’d be a little more willing to believe the Tesco-man hype were Mr Lewis to make some similarly punchy public statements about the subtler ways multi-nationals have been sneaking through price rises, via the deflation in the sizing of their products. |
Unlike the change in the headline price of a jar of Unilever's Marmite, pack size changes often fly under the radar. But the effect on the consumer is exactly the same as a rise in the headline price. | Unlike the change in the headline price of a jar of Unilever's Marmite, pack size changes often fly under the radar. But the effect on the consumer is exactly the same as a rise in the headline price. |
Retail guru Steve Dresser notes a reduction in bag sizes of maltesers to 103 grams in his Grocery Insight. This he spotted at a Morrisions. He has a term for this: Shrinkflation. | Retail guru Steve Dresser notes a reduction in bag sizes of maltesers to 103 grams in his Grocery Insight. This he spotted at a Morrisions. He has a term for this: Shrinkflation. |
If anything it’s worse than inflation because of the sneaky way suppliers have gone about imposing it. | If anything it’s worse than inflation because of the sneaky way suppliers have gone about imposing it. |
Where’s Tesco-man now when we need him? Come on Mr Lewis, put on your cape, pull your undies up over your trousers and give the rotten so-and-sos what for! | Where’s Tesco-man now when we need him? Come on Mr Lewis, put on your cape, pull your undies up over your trousers and give the rotten so-and-sos what for! |
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