Tesco's Gross margin, as of July 5th is
6.31%.
I'm not sure what they mean by that - margin of sales over which costs in particular? purchases, staff, rent?
But as a whole they are price competitive, they earn and gain market share by offering the lowest prices on high-volume goods. So they end up screwing their suppliers who pay things like listing fees, storage in Tesco's warehouses, and get paid at ninety days.
In any case, typical retail margins on food are in the 20-30% range (as a % of sales, not as a markup). Much lower on fags and petrol; much higher on fresh food but that has much bigger infrastructure costs and wastage due to short shelf life. Tesco can squeeze lots of the additional costs because of its size. Prices and margins higher in the Metro stores than the hypermarkets.
So they can often undercut local stores and do so with a vengeance to get established in an area, as well as bullying the local authority on planning, and snapping up all the old pubs.
The promise of jobs is hollow. They are big local employers, but hardly create fulfilling jobs. Even as a store manager you just end up a pitiful cog in a corporate machine.
They suck the life out of communities and someone in their CSR department has done a deal with the Trussel Trust over foodbanks.
Like everything else they do, it stinks.