Asda Milking UK Farmers
U.K. dairy farmers are outraged over the latest price war between Wal-Mart owned Asda and rival Tesco. Last week, the grocers announced price cuts on milk, which farmers argue will devastate their industry. For farmers coping with escalating production costs, the price cuts arrive at a most inopportune moment. Asda, however, is applauding itself for its efforts, relishing in the fact that the prices are the lowest they have been since 2001.
Asda claims that the move is an investment for its customers and that it will not affect the dairy farmers. But farmers justly harbor immense skepticism, noting that the average selling price has increased from 41.2p to 51.6p per liter (a 22% rise) since 1995, while their profit margins have decreased from 24.5p to 18p per liter (a 27% decline).
According the British National Farmer’s Union, this brutal monopsony has contributed to the sharp decline in farmers – down to 2,000 from 5,000 – over the past 10 years. Ironically, while farmers have suffered, Asda’s own profit margins on milk have actually risen from 1.3p to 15.6p per liter (a 1200% increase since 1995).
Given Asda’s history of milking farmers for their profits, NFU frustrations are merited, especially in a tough economy that leaves no further room to bend to Asda and Wal-Mart’s monopsony. Traditionally, when suppliers have resisted the retail giant’s price demands, the corporation has threatened suppliers, increased the shelf space of its own brands, and discontinued the stocking of a product, which has driven suppliers out of business.
But in this case, can Asda really begin producing its own milk? Considering the steadily decreasing profit margins for the milk industry, it wouldn’t be surprising if Asda’s long term strategy included a buyout of milk farms for its own gain. Who knows? In the mean time, however, some farmers are considering protesting.
Posted by Joel Nezianya on Tuesday, August 19 | 2 comments | Permalink
Consumers Outraged Over Real Fur at Asda Stores
Wal-Mart-owned Asda has added its latest entry into the company’s history of bizarre stories. The grocer was recently forced by outraged consumers to recall pet toys made with real animal fur at 275 of its stores. One of the toys was confirmed to have been made with rabbit’s fur, which infuriated animal rights protests, arguing that fur is acquired barbaric conditions. The activists suspect that many of the toys could be made with dog or cat fur, since Asda asks few questions of its Chinese suppliers. (Read: your cat could be chewing on its cousin’s skin.) They have also called on the government to mandate labeling so that consumers can be aware which fur is real and which is synthetic. Asda’s manufacturer has called it a ‘slip-up,’ but this most recent business blunder surely leaves writers thinking “you can’t write stories this good.”
Read the full story below:
Outrage as supermarket giant sells real fur toy [Sunday Herald (U.K.)]
OUTRAGED CONSUMERS have forced supermarket giant Asda to remove pet toys made out of real fur from 275 of its stores. The consumer campaign has exposed how many items, which customers are buying on the high street in the belief that they are made from fake fur, are actually made from real fur.
Animal rights protesters noticed the Swipe’n’Sway toy, a cuddly mouse for cats to play with, in an Asda store in the Wirral near Liverpool and sent it for testing. It was found to be made from rabbit fur. Animal groups are warning that there is a chance that toys from other stores could be made from cat or dog fur because Chinese suppliers are not honest about what they are selling.
The toy found its way on to shelves after a slip-up by manufacturer, Hartz.
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Posted by Media Team on Monday, August 18 | 2 comments | Permalink
MIXED FEELINGS OVER ASDA PLAN IN SOUTH WEST WALES, UK
Mixed Views Over Asda Plan [Llanelli Star (U.K.)]
Shoppers have expressed mixed reaction to plans to build an Asda store at Parc Trostre Retail Park.The supermarket giant, which is owned by Walmart, is seeking planning consent to build an Asda Living store which specialises in fashion and homeware at the former Carpet Right unit. The company has reassured shoppers that it has no plans to pull its store out of Llanelli town centre.
In an application to the authority, it said the proposed store would compliment the existing supermarket, which stocks mainly food.
It said: “Asda has no other Living outlets in South West Wales, and we expect the new facility to bolster the attraction of Llanelli.”
But some residents feel if the store is approved it could add to the problems of the town centre.
Alana Williams, of Walters Road, said: “I can’t see it as a good idea. It is not nice to see the town empty.”
Posted by Tony Calero on Thursday, August 14 | 0 comments | Permalink
U.K. SITE FIGHT: WILL WAL-MART COME TO WATERSIDE?
Asda eyeing a city site? [Londonderry Sentinel (U.K.)]
SPECULATION is growing that supermarket giant Asda could open a store in Londonderry’s Waterside.
Owned by US corporation Wal Mart, the company has viewed its move into the Northern Irish marketplace as a major success since acquiring all but one of Safeway’s 13 outlets in the Province in 2005.Continued expansion has seen the retail giant’s operation in Northern Ireland grow to 16 outlets. The company has repeatedly stated its desire to have 20 stores across the country by the end of the decade.
It is now believed the north west - and Londonderry in particular - is seen as a lucrative region by the company.
The Sentinel understands Asda representatives have visited the region to assess demand and gauge the viability of potential locations.
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Posted by Tony Calero on Wednesday, August 13 | 0 comments | Permalink
OFFICIALS TO CONSIDER ASDA PROPOSAL IN BOGNOR REGIS, UK
Vital talks on plans for Asda store [Littlehampton Gazette (U.K.)]
A crucial meeting is being held at the end of this month about the planned Asda store in Bognor Regis.
The session will bring together officials of the retailer and Arun District Council.
It has been called in advance of the council’s determination of the planning application for the store. This is likely to take place in the early autumn.
Asda submitted its proposals in early January to build a store on Oldlands Farm farmland off Oldlands Way next to the A29 Shripney Road.
The company wants to create an outlet of 7,509sq m gross space open 24 hours a day, staffed by hundreds of employees. It claims the new store would boost Bognor’s retailing profile by tempting residents who shop elsewhere to spend more money in the town. It will also provide effective out-of-town competition to Tesco.
Parish councillors, residents and other businesses have broadly welcomed the prospect of Asda’s arrival.
But Arun’ senior councillors and officers have stated opposition to the site. They want Oldlands Farm to be kept for a business park with high-skilled and high-paid jobs.
Posted by Tony Calero on Monday, August 11 | 0 comments | Permalink
ASDA LOSES IN CHIPPENHAM, U.K.
ASDA loses appeal [This is Wiltshire (U.K.)]
SUPERMARKET chain ASDA has lost its latest bid to build a £25m store in Langley Park, Chippenham.
The proposals had caused uproar among people living in the area who were opposed to the plans from the start.North Wiltshire District Council refused to support the plans, which led to an appeal by ASDA.
advertisementFollowing the appeal hearing, planning inspector Geoff Salter said he had reached a decision based on a number of points, including the adverse affect the store would have on Chippenham town centre shopping and the size of the proposed 52,000sqft development.
It is now thought the ASDA chain might make a play for the Bridge Centre site.
Posted by Joel Nezianya on Wednesday, August 06 | 0 comments | Permalink
RESIDENTS OBJECT TO ASDA’S ROUND-THE-CLOCK LIQUOR LICENSE in BOOTLE, U.K.
Residents object to 24-hour licence for new Bootle Asda store [Bootle Times (U.K.)]
RESIDENTS in Bootle have objected to Asda’s application to sell booze 24-hours a day throughout the week.
The supermarket, at the former TA site in Strand Road, has applied for a 24-hour alcohol license and the provision of late night refreshment from 11am to 5am.
However members of Marsh Lane High Rise Residents Association, welcome the supermarket to their area but believe the plans would encourage alcohol abuse.
Marion Cannon, secretary of the association, in an objection letter, said: “We have had recent problems with alcoholic itinerants and we the residents have worked very hard and successfully with all agencies including the police and the registered social landlords to alleviate this.”
Mary Joyce, who lives in Marsh Lane is already disturbed by noise from drunk revellers and believes it would add to the problem.
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Posted by Joel Nezianya on Wednesday, August 06 | 0 comments | Permalink
“We’re Sorry” Means “We’re Sorry This Information Got Out”
Yesterday we posted a story from the U.K. about a list of “requests” Asda’s magazine purchaser made of its suppliers. Among the set of outrageous demands: profit improvements, new fees for store space and two pages of editorial space in every publication.
As is so often the case with Wal-Mart, once its exploitative behavior was exposed to the light of day the retailer backpedaled furiously, said the demands were “a mistake” and blamed some poor low-level executive.
This isn’t an isolated incident, however, of Wal-Mart using its power unfairly. The statement of one publishing industry insider could be applied to any one of a number of industries that Wal-Mart has relentlessly bullied in to lowering prices:
“Its absurd demands show a complete failure to comprehend the costs of producing a magazine. A demand for two pages of advertising/editorial in each magazine is tantamount to blackmail.”
For those who argue that Wal-Mart’s monopsony is good for consumers, think about a world where corporations write your magazine articles. Wal-Mart’s marketplace dominance might mean lower prices, but it seems unwise to trust a corporation with so much power.
Asda admits ‘mistake’ in magazine distribution row [Brand Republic]
Asda has told Campaign that it made a mistake when it asked magazine distributors to grant it free editorial space in titles of its choosing.
Magazine publishers have branded Asda a “schoolyard bully” after it proposed changes to distribution arrangements that insiders say would “devastate” the industry.
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Posted by Alex Goldschmidt on Thursday, July 31 | 4 comments | Permalink
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