Opportunity Omagh gets underway

by Gemma McCallan

A Tesco store similar to this one will get the ball rolling at Opportunity Omagh

It has been announced that the £350 million Opportunity Omagh development is underway with supermarket giants Tesco confirming their arrival. There have been mixed reactions to the news however, with claims that it will have a detrimental affect on the town centre, taking business out of the town centre. Omagh Chamber of Commerce President, Christopher Kelly has welcomed the news but has expressed concerns that the proposed location could create ‘a rival town’. Mr Kelly said: “The Chamber welcomes the news that Tesco has plans for a new store in Omagh and that the giant retailer is interested in investing the local community and creating jobs. The problem is that the proposed site on the Derry Road is the wrong site and is too far out of town.”

It has also been recognised however that the development, which is the biggest in the town in over 20 years, will be a huge catalyst for employment in the area, creating over 2000 sustainable jobs across a number of sectors. Chairman of Omagh District Council, Cllr Frankie Donnelly said: “The importance of the immediate boost and jobs for our local construction sector from this £350m project, combined with the longer term sustainable job creation and infrastructure provision are vital to ensure that Omagh continues to grow and develop as a place for our people to live and work.”

Tesco plans Haddington move

By Gavin Harper

Residents in the East Lothian town of Haddington have voiced anger at supermarket giant Tesco’s plans to move their store away from the town centre, a move which would lead to a major downturn in business in the town.

It is believed that the supermarket chain wish to move to the outskirts of the town, however their chosen location is currently not served by any public transport links, thus making a move in the near-future seem unlikely.

Regardless, the local residents are concerned at these plans, and have voiced this concern through a petition that is expected to be given to the local council in the hope that their influence will end the supermarket’s plans.

Local shop owner Joe Forte, who is also a member of the Haddington Business Association, said: “We believe that any developments to the town centre should only take place if it doesn’t harm existing businesses. However, it would seem clear to us that the plans drawn up by Tesco would cause a major downturn in town centre businesses”. It is believed that any move will now be prevented in the immediate future, and local residents also hope that the move will now be scrapped altogether.

One local said: “Just now, we can go to all the shops in the one visit, but if they move Tesco then it’ll be a completely different story. It’ll take us all day to get to the shops. It’ll take all the business away from the local shops, and most of them have closed down anyway recently so they should be trying to keep the town busy.

Tesco bosses have said there is a need for a new store to meet customer demand from the surrounding area, which has increased since the store first opened in 1997, but it remains to be seen whether this store will be on the existing site, or if the supermarket giants will get their way.

Tesco propose new store

Tesco gears up to enter global banking sector

Sir Terry Leahy - CEO of Tesco

by Paul Foy

Tesco’s plans to establish a bank could spread far beyond the United Kingdom, Edinburgh Napier News can exclusively reveal. The news comes as Tesco recently announced pre-tax profits of 1.6 billion for the first 6 months of the year.

A source within the team handling the re-branding of Tesco Finance to Tesco Bank, has revealed that if the bank gets a steady foothold in the UK market, it plans to go global with the scheme. The company’s current efforts are based in Edinburgh, and it seems that the city would be seen as an ideal international base of operations for the global expansion.

Our source has described Tesco’s strategy of implementing the infrastructure to “upgrade” from Tesco Finance to Tesco Bank, as “incredibly aggressive”, and went on to say the company was trying to “do in 10 months what would normally take an efficient team 2 years.

“This is the way Tesco conducts itself in business, and is obviously a major factor in how it has become the UK’s biggest supermarket”

The bank has already created around 80 jobs in the city, but this could increase significantly should the proposed global expansion come to fruition. This will come as welcome news to the citizens of Edinburgh, as the city has been one of the worst hit in the fall out of the global banking crisis.

Relief as ‘Rage Against the Machine for Christmas no.1′ Facebook page re-appears

For Jon Morter and his 700,000 avid followers, (and counting) of the Facebook page, ‘Rage Against the Machine for Christmas no.1′ it has been an exciting couple of weeks. However last night concerns were raised when Facebook’s most popular campaign page disappeared.

Ringleader, Jon Morter was concerned that the page had been shut down in a bid to halt the masses from buying Rage Against the Machine – Killing in the name.

The page went down last night (13th December), and had been inaccessible today, the day in which Morter’s minions intended to storm the charts by purchasing the 1993 hit.

Speaking to theglobalhearld.com Morter said,

“The group went down last night in which a member of Facebook’s PR team contacted to say it was a ‘bug’,” he continued, “Later in the evening the group returned as normal, but now it’s gone yet again I do start to be concerned.”

Jon’s main concern was that charitable contributions to Shelter had substantially slowed. Members of the group have so far raised in excess of £20,000 for the charity.

In a panic a back-up page was launched while Morter awaited another response from the powers that be at Facebook. However, tonight it would appear that all is well on the camp Rage side as the page is once again functioning as normal.

The track is available to download from various websites including, HMV.com, iTunes, amazon, Play.com and Tesco Digital – and looks to be giving Mr. Mclederry a run for his money currently sitting proudly at number 1 in the HMV download charts, while Joe McElderry sits patiently at number 3. Rage also reside the top spot in Amazon’s top downloads as well as number 1 on play.com. However bookies favourite Joe, currently retains the number 1 position on itunes.

Are the Big Names Fooling the Nation?

By Ben Graham

The largest supermarkets in Britain may be psychologically coercing staff and customers according to workers at major supermarket chains.  Although companies such as Asda and Tesco are now a driving force in the global economy (Tesco being the top supermarket in Britain, closely followed by Asda), there have emerged a number of revelations surrounding store conduct and in particular the process of staff feedback.

Known in Asda as the ‘We are Listening’ questionnaire, this form of staff company interaction has come under scrutiny lately from a number of sources, arguing that due to intervention from superiors, the staff are highly unlikely to write honestly about their superior staff and company overall. An anonymous Sales Assistant in the branch of Asda in a store in Edinburgh explained that before undertaking the form, staff are shown ‘a short presentational video’ pertaining to the ways in which ‘Asda provides the utmost care for their staff’. When asked if he saw this as a possible means of trying to better guarantee a positive response to the company, the anonymous Sales Assitant admitted that he saw no other reason for the video and free ‘goodie bag’ than to coerce the staff into providing more ‘company friendly answers’. The ‘goodie bag’ features sweets, deodorant and other small items.

The requirement for such ‘company feedback’ is not uncommon in supermarkets, yet many would claim that it is the lack of any trade unions that has led Asda to require a quantitative picture of retail bliss for both customer and staff.

George Monbiot wrote of Asda’s ‘Big Eat Trails’, a PR campaign in which schoolchildren are led around a number of Asda stores in order to ‘raise awareness for healthy eating’, as a means of ‘implant[ing] in them the habit of shopping at Asda’. Other stores, including Tesco and Morrisons have embarked on ventures such as these themselves, inluding promotional deals with schools and sports clubs.

A number of different psychological techniques have been found in supermarket chains, ranging from things as simple as the ‘impulse buy’ section by the tills to the size of tiles on the shop floor, as the size of supermarket floor tiles have been found to correlate to the speed people browse the shelves of their supermarket.

In response to the growing influence of supermarket chains, a number of different websites have grown in popularity over the past few years. Frequently visited websites include corporatewatch.com and tescopoly.com, both of which deal with the negative effects of mass consumerism and supermarket dependence.

When asked about the ‘we are listening’ process, the UK Asda head office said they conducted the surveys ‘in order to maintain the high quality’ of retail. Asda declined to comment when asked if the process before  filling out the questionnaire could lead to biased feedback. The Head Office for Tesco also declined to comment, however both companies assured me that should I wish to further inquire into the feedback aspect they would be happy to send out an information pack.

Consumers back in the lap of luxury?

Increased consumer confidence at the tills

by Ross Haig

With consumer confidence seemingly on the rise again after a difficult year on the high street, demand for luxury food items has rocketed.  Aisles once filled with discount and value brands are seeing the return of their expensive counterparts, following on from figures released earlier this month which showed that a 2.8% sales increase at Tesco included significant growth in their Finest food lines. Last week the supermarket launched a Finest Restaurant range which includes dishes such as the Roasted Peppers and Cream Cheese Pasta Tartlets with Basil Dressing.  Retailing at £5, it’s a significant step up from a 75p Value Lasagne.

Similarly, while 2008 was all about the rise of cut-price retailers such as Lidl and Aldi,  upmarket supermarket Waitrose is now the UK’s fastest growing food chain after a 10.2% surge in sales.  It’s reassuring news for retailers after an uncertain 12 months.

Show You Care

by Hollie Smith

Tesco Barrhead where the events will be taking place

Tesco Barrhead where the events will be taking place

This weekend, residents of East Renfrewshire will be out in force to help raise money for Muscular Dystrophy Campaign and the Army Benevolent Fund.

Tesco in Barrhead will be playing host during the three days of scheduled events which include: face-painting for all, a raffle – with the chance of winning a Tesco goody-filled hamper worth £150 and a car boot sale, which will take place on Sunday.

Margaret MacIver, head of Tesco Barrhead’s charity committee, said:

“We are staging the charity events over three days, from Friday the 9th of October through till Sunday the 11th.
“We are offering a great chance for everyone in our community to get involved and show that they care. Over the three days we hope to raise a total of £1500 so we really would like everyone in the surrounding areas to play a part.

“The car boot sale is our main event, we have already had a great response with over twenty people already signed up to take over one of our car parks for the day but as always we are looking for more.”

If you are unable to give your time this weekend you can still pledge a donation. If you would like to find out more information about the events taking place over the weekend or if you would like to find out how you can play your part contact Margaret MacIver, 0141 532 7319.

Financial News

By Vikki Graves

HSBC asks shareholders for £12.5bn

Chairman Stephen Green said the funds would be used to see the group through the current uncertain economic climate.

The news comes as HSBC announce pre-tax profits of £6.5bn for 2008, a 62% fall on the previous year.

There was a drop in share prices across the banking sector this afternoon, with HSBC shares down by as much as 19%.

Row over Sir Fred’s RBS pension continues

Pressure is still mounting on former Royal Bank of Scotland Chief Executive Sir Fred Goodwin to give up a large part of his £693,000 annual pension.

Deputy Labour Leader Harriet Harman has said that the government is prepared to take measures to prevent him from receiving the full amount.

Meanwhile, it has come to light that RBS are still paying for Sir Fred’s personal security costs, including CCTV and security staff at his home.

Tesco to create 200 jobs in Edinburgh

Tesco Personal Finance is expanding its banking operation in the capital.

The supermarket’s financial arm, which currently employs 250 staff will move to a new, larger headquarters in Haymarket within the next year.

Woolworths closure prompts huge reductions

 BY Adam Couper  

up to 50% off in stores
up to 50% off in stores

Today sales began across 815 Woolworths branches after a buyer could not be found for the chain.The administrators are aiming to close some shops by the end of the year and this has lead to shops being busier than ever.

 Thomas Firoozi, 21, student said: “I come to Woolworths regularly I’ve never seen the place as busy. It’s manic in there and the staff looked very stressed.”

 

Members of the public seeking good deals are taking full advantage of the sales which in some cases give up to 50% off products.

 

Callum Nesbit, 21, student, said: “Yeah it’s very good, they’ve made huge reductions and I am here to take advantage. I’ve got a lot of my Christmas shopping done today and it’s fair to say I’ll be back. It’s a bonus with Christmas coming up.”

 

Shops such as Tesco, Poundland and Sainsbury’s have been watching events very closely with a view to buying shops in good location.

 

Woolworths were due to celebrate their 100th anniversary next year but with the company in over £380m in debt it’s looking future is looking bleak.

 

Tesco Cuts Carbon Footprint

tesco-every-little-helps-loTesco have unveiled ambitious new plans to generate energy on-site at 50 of its UK stores, it revealed earlier this month.

 Making decentralised energy generation is a key part of the strategy to halve the carbon footprint of its existing estate by 2020.

Lucy Neville-Rolfe, Corporate & Legal Affairs Director, said: “At Tesco, we care about the environment and want to lead the way in preparing for a low carbon future. We are now ready to unveil the scale of our plans to use Combined Heat and Power to cut our carbon footprint.”

Combined Heat and Power (CHP), works by making use of the heat that is created when electricity is generated. In large power stations, this heat is dispensed as a useless by-product but by installing mini-power stations, Tesco will use the heat to warm its stores.

Dr Doug Parr, Policy Director for Greenpeace said: “As part of their responsibility to tackle climate change, it’s vital that big companies choose to put money into the most efficient technologies available. Combined heat and power stations are a clear winner in this respect.”

The technology is completely safe and can cut carbon emissions from each store by up to 10%. By building 50 of these stations, Tesco will save the equivalent energy bill of five stores. Testing of CHP has been underway since 2006, with plants currently working at 10 sites.

 The chain expects investments in CHP to be paid back within 8 years as the technology is refined and the market matures. Lucy Neville-Rolfe added: “We are applying for planning permission to build a CHP plant at all our larger stores and intend to build them as an integrated part of every new Extra or Superstore. Our trials have shown us that this is a much more efficient way to create electricity so it makes sense – both financially and environmentally – for us to put our full weight behind it.”

Most of Tesco’s CHP stations will run on gas but last month it opened a plant at its Colney Hatch store which runs on bio-fuels such as UK-grown vegetable oil. As vegetable oil is a renewable material, the CO2 emitted is equal to the amount it has absorbed whilst growing, making the energy used in the store carbon neutral.

As well as supporting the store’s heating needs, the Colney Hatch plant is used to produce cooling too. Chilled water is produced supporting the energy needs of refrigeration and air conditioning systems.

Greenpeace also believe: “ In these tough economic times, this kind of canny investment is more important than ever, as the move will slash costs as well as emissions”.

 

 

Tesco joins Oasis in failing to crack America

not so fresh & not so easy

not so fresh & not so easy

By Michael Heggie

A senior executive from Tesco has said that the troubles in the American economy will force the supermarket giant to slow the expansion of its fledgling Fresh & Easy business on the West Coast of America.

Tim Mason, chief executive of Fresh & Easy, has said that plans for the chain to expand into northern California could be put on hold because of the recession gripping the United States.

Fresh & Easy are to take a far more flexible approach towards the expansion of the business.

Mr Mason said: “The industry is in a very different place than when we came out and did the feasibility research three years ago. Then the US consumer confidence index was at the highest level it had ever been.

“There’s a big cost step for us when we open up northern California and we can be quite flexible about when we do that. As things get to a point that we like how it’s all coming together, we like the way the stores are growing into the second year, then we can accelerate.”

Tesco had hoped to have 200 Fresh & Easy stores, modelled on its Tesco Express format. These stores will operate across California, Arizona and Nevada by February next year. However this target has been switched to November due to the recession.

The comments come two days after shares in Tesco had suffered their biggest one-day fall for a month after it emerged that the group’s sales in South Korea, Tesco’s largest market outside the UK, and China had slowed in the tougher economic climate.

Tesco is spending $1.25billion over five years trying to break into the US. The move has been the subject of speculation since the first store opened near Los Angeles a year ago.

Tesco has failed to compete with the other big name supermarkets in the US, such as Albertsons or Ralphs. The company has put far more emphasis on price promotions to emphasise the brands value for money.

Mr Mason added: “Starbucks and Costco, to pick but two, have said that California, Arizona and Nevada are among the most difficult places that they operating in. Tesco has stores all over the world and there have been one or two weeks where customers everywhere wake up on a Monday morning and say: ‘Oh dear.’ Times are quite tough.”

However, Mr Mason insisted that critics are wrong and highlighted that to go from no stores to 100 in a year was an “exceptional” achievement.

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