Comments on: Tesco Understands Economics http://www.leanblog.org/2008/07/tesco-understands-economics/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mark Graban http://www.leanblog.org/2008/07/tesco-understands-economics/#comment-3798 Mark Graban Thu, 24 Jul 2008 12:27:00 +0000 http://leanblog.bigbigdesign.net/2008/07/tesco-understands-economics/#comment-3798 Costco has a similar understand that they can't force prices on customers, from today's WSJ:<br/><br/>Discount chain Costco Wholesale Corp., one of a handful of big chains that had been thriving amid the consumer-spending slowdown, delivered a surprise profit warning Wednesday, saying that its costs for merchandise were rising faster than it could pass along price increases to consumers. The news drove down Costco stock almost 12% and depressed shares of other discounters, including Wal-Mart Stores Inc. and Target Corp.<br/><br/>"Retailers don't have a lot of pricing power," says Love Goel, chairman of Growth Ventures Group, a private-equity firm that invests in retail businesses. Costco has a similar understand that they can’t force prices on customers, from today’s WSJ:

Discount chain Costco Wholesale Corp., one of a handful of big chains that had been thriving amid the consumer-spending slowdown, delivered a surprise profit warning Wednesday, saying that its costs for merchandise were rising faster than it could pass along price increases to consumers. The news drove down Costco stock almost 12% and depressed shares of other discounters, including Wal-Mart Stores Inc. and Target Corp.

“Retailers don’t have a lot of pricing power,” says Love Goel, chairman of Growth Ventures Group, a private-equity firm that invests in retail businesses.

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]]> By: Peter P Patterson MD http://www.leanblog.org/2008/07/tesco-understands-economics/#comment-3781 Peter P Patterson MD Sun, 20 Jul 2008 01:02:00 +0000 http://leanblog.bigbigdesign.net/2008/07/tesco-understands-economics/#comment-3781 Wow ... talk about vicious press ... the 4th estate you say ... sounds like someones forgetting that mission.<br/>Reading about that mentality in the English press I remember when I was growing up - north of 49 - we called it not-so-Great-anymore Britain...Sad.<br/>/Dr. Pete Wow … talk about vicious press … the 4th estate you say … sounds like someones forgetting that mission.
Reading about that mentality in the English press I remember when I was growing up – north of 49 – we called it not-so-Great-anymore Britain…Sad.
/Dr. Pete

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