£6,000 per minute. This rediculous sum is not the wage demands of the latest signing for Man Utd, or the expenses claim of a porn-addicted MP, but the profit that Tesco made every minute over the past year.
The supermarket overlord has made a pre-tax profit of over £3billion, 10% up on the previous year. So it would appear that the downturn has so far passed them by?
Actually, it’s not all good news for them. Tesco has lost ground to some of its rivals, such a Morrisons, who it has admitted has been nicking some of its market share. It has also struggled to make an impact in the US.
Of course, Tesco has its eyes on some even bigger markets, and with such a huge profit, together with a loyal customer base, its plans to become a high street bank, as well as a retailer, are almost certain to succeed. Indeed, I was surprised to hear that they’ve managed to open over 100,000 current accounts in the past 2 months, which is also astounding.
photo credit: joolney
The problem I have with the major supermarkets operating in this manner is that they are effectively taking the cream of the markets offered by other high-street retailers.
For example, they will stock the Top 20 DVD’s, where i would imagine, the majority or purchases (and profits) are which could force independent retailers out of business.
All under on roof – but at what future cost to us?
This is crazy amounts of money. However it would make Tesco bank a safe bet. They already have lots of good finance products!