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Firm closing


finlo

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6 minutes ago, CrazyDave said:

surely they will just take over the current Shoprite warehouse?  They can’t service the stores without it

The warehouses are not mentioned in the media release. My initial thought was that they would give the enlarged Tesco some local resilience, but if it doesn't fit their nationwide distribution model, they probably don't want them. Tesco seem to stock all stores from huge distribution centres, on a JIT basis.

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14 minutes ago, HiVibes said:

The warehousing also not mentioned, so winter with a few non-sailings will be epic... 

Chief Ministers statement on this refers to losses outside of stores.

But - like CoOp - I’d imagine Tesco retaining on-Island warehousing..

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6 minutes ago, Ringy Rose said:

That’s not normally the Tesco way, as a walk around any city centre will show you. Their general policy is to keep an area well filled with Tesco stores so that there isn’t room for a competitor to move in.

They just removed their only real competitor on the island.

There is no way on earth some stores won’t be gone within 5 years

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1 minute ago, CrazyDave said:

They just removed their only real competitor on the island.

There is no way on earth some stores won’t be gone within 5 years

I agree. I think most larger stores will close and be replaced by Tesco Express, or similar. May keep Port Erin and large Ramsey shop, and small Peel Tesco Express), but I feel, Winerite, Onchan, Victoria Road, Peel large store and Castletown, Ramsey St Pauls Sq are all in danger. 

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32 minutes ago, Manxman1234 said:

Why would they take a 21 year lease to close them?

Presumably Shoprite will have approached other potential buyers, who may, or may, not have been interested. But it looks like the final deal was 'all or nothing' and it also looks like the future income from those leases is the only consideration that Shoprite will receive. 

Tesco will also have seen this deal as a way for keeping any competition out, so acquiring everything and just having to pay a bit of rent is probably a small downside. The rental cost of the two or three that Tesco might not want will be small beer in the overall picture, and they can presumably sub-let if that works for everyone.

 

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1 minute ago, CrazyDave said:

They just removed their only real competitor on the island.

And that’s generally how they like to keep it, with no room for a competitor to muscle in against them. The main Shoprite stores aren’t that closely packed together, apart from maybe Onchan. Little Shoprite and Winerite to become Tesco Express/Budgens/Londis/Premier.

Stops other chains getting ideas.

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12 minutes ago, User Name said:

they are taking over the local warehouse in Pulrose too

 

Source???? There is no mention of the warehouses in the media releases, or other documents I have seen. Local warehouses do not fit the Tesco distribution model. 

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6 minutes ago, Nellie said:

Source???? There is no mention of the warehouses in the media releases, or other documents I have seen. Local warehouses do not fit the Tesco distribution model. 

I am the source, and the Island is hardly typical of a UK conurbation so will need dealing with differently. don't forget the good old Manx Winters, Tesco have experience of this and will change the local model to suit.

 

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7 minutes ago, flaps said:

I wonder about the old Wilko shop behind the Port Erin store. Also the Ballasalla Merc garage site, and the warehouse in Pulrose?

Tesco are taking leases on nine stores. The ex-garage site in Ballasalla is clearly not involved. It just happens to be a property owned by Shoprite's parent. They also own loads of other property around the Island, for example, their HQ in Victoria Road, which won't be part of the deal either. 

 

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