Domino’s sales rise as take-outs become popular

1 10 2008

The credit crunch has meant that eating out is beginning to become a costly affair for most families and so they prefer to stay at home. However, rather than cooking a meal, most are beginning to order take-outs. Domino’s Pizza’s chief executive Chris Moore said that it was benefiting from this trend as the sales for the last 13 weeks had increased by 17.8%.

Supermarkets are doing their bit to attract customers by offering huge discounts and BOGOF offers on ready meals which only has to be re-heated before eating. However, Moore believes that this would not affect Domino’s sales since people do not want to go through the hassle of having to buy the product and re-heat it when ordering in takes roughly a half-hour only. Seems like many still prefer convenience than saving money.

Tesco’s first half profit up 11%.

30 09 2008

Supermarket giant Tesco today announced a 11% rise in its half-year pre-tax profits which rose to £1.44 billion from £1.29 billion last year with sales rising 13% to £25.6 billion. Like-for-like sales grew by about 7% which seems very good especially since consumers are cutting back on their spending and discount retailers like Aldi, Lidl, Netto, Iceland, Wilkinsons, etc. are attracting customers from large supermarkets.

It was reported earlier this month that Tesco’s market share had decreased by 0.2% to 31.5%. However, it still has a much greater market share when compared to stores such as Aldi which has 2.9% market share which allows Tesco to benefit from economies of scale. This means it can buy its stock in relatively large numbers at lower cost which would normally allow it to increase its profit margin, but in the current financial situation, it allows Tesco to reduce its prices thereby attracting shoppers looking to reduce their grocery bills.

Tesco introduced a new discount range of about 400 products aptly named “Discount Range” with the aim to compete with discount stores and offer customers value for money. Tesco’s chief executive Sir Terry Laehy claimed that sales of its discount range was rising faster than that of Aldi or Lidl.

Free Laptops

2 09 2008

For some time now, mobile phone networks and retailers have been offering free or subsidised handsets when you sign up for one of their plans usually for a period of 12 or 18 months. Its great for consumers since they get the latest handsets without having to pay the full price and the networks are happy since they are assured custom for the stipulated length of the contract, in other words, the customers are locked to the network. However, the market for voice and text services is riddled with competitors and is also becoming saturated since there is a limit to how much people would talk or send text messages.

However, many people are now beginning to access the internet for applications such as chatting, e-mails, local maps, etc. via their mobile phones. But, the mobile phone has limitations, the most obvious being processing power and screen size. Laptop computers have become the new “handsets” which mobile networks are now offering for free when you sign up for one of their mobile broadband deals. It all started about a year ago when Carphone warehouse started offering a Dell laptop when you signed up for their Talk Talk or AOL broadband package. Now, Orange, T-Mobile and Hutchitson 3 have joined the bandwagon with their own mobile broadband deals offering free laptops. More networks offering such deals would force them to reduce prices on their tariffs. This would be beneficial for those looking to surf the internet on the move as they wouldn’t have to invest in a laptop, especially for those who don’t already own one or are looking to upgrade theirs soon.

However, with the credit crunch affecting high street sales, it is likely that stores will offer heavy discounts on consumer electronics making it cheap to buy laptops which might deter people from signing on to such deals.

Boom for Discount Stores

25 06 2008

According to recent figures, discount stores Aldi and Lidl have recorded sales growth of 20% and 14.9% respectively on a like-for-like basis. Even Iceland, which specialises in frozen food, has had a growth of 15.2%. Now this may not look that significant, unless you compare it to the growth reported by the established supermarkets-Tesco, Sainsbury, Asda and Morrisons-which reported a growth of 6.3%, 4.3%, 7.9% and 10.2% respectively.

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