| Dolphin-Safe
Tuna |
£2BN
PROFITS
Tesco offered its rivals no respite
after buoyant Christmas sales kept the
supermarket giant on course for annual profits of
more than £2 billion. Unveiling record figures
for the seven weeks to January 8, the UK's
biggest retailer said total UK sales were up by
12.1% with the like-for-like figure ahead by 7.6%
when excluding petrol forecourt sales. The
performance underlined the dominant position of
the retailer, which takes £1 in every £8 spent
by UK shoppers and is estimated to have secured a
29% share of the UK retail food market over the
festive period.
In contrast, Morrisons and Sainsbury's have
reported flat Christmas sales, while Marks &
Spencer and Woolworths - both hit by Tesco's
expansion into non-food areas, have disappointed
investors with their updates.
Tesco told the City that its strong sales
performance over Christmas left it confident it
would meet expectations for profits of at least
£2 billion. The rapid growth at Tesco, it only
posted profits of £1 billion four years ago, has
sent shares to an all-time high, although the
stock slipped back 3% as some analysts had been
hoping for a slightly better sales performance.
Simon Proctor, an analyst at Charles Stanley
stockbrokers, said, "This represents an
excellent performance, albeit one that has
slightly disappointed a market eager for yet
another profits upgrade from Tesco." The
company, which has around 780 UK stores, said
customers also reaped the benefit of strong
competition as its price cuts resulted in higher
than normal deflation at 1.6%.
It also announced £80 million of cuts on New
Year's Eve. Overall, sales were up 13% with
international business up 16% from countries
including Hungary, Poland, Taiwan and Japan.
Significant growth in petrol volumes pushed UK
like-for-like sales up by 9.3% on a year earlier. |
PROFITS
UP
Tesco revealed it is raking in an extra
£850,000 a day. Boss Sir Terry Leahy unveiled
profits of £908million for the six months of
2005, up 19% on the previous year. |
RECORD
PROFITS
Tesco has revealed record profits of
£2.2billion. That equates to £251,000 every
hour and £70 every second, with profits up
£200million on the previous year. (Source: Sunday Mirror, Apr/06) |
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TESCO AND WAL-MART
As part of their bids for world
domination, Tesco and Wal-Mart both own chains of stores
in Japan. All these chains are currently selling the meat
of whales, dolphins and porpoises (cetaceans), although
the ways in which they are hunted are unnecessarily cruel
and in many cases illegal. The Environmental
Investigation Agency (EIA) and Greenpeace are currently
putting pressure on Tesco, Wal-Mart and the Japanese
government to work towards ending these practices.
The International Whaling Commission (IWC) implemented a
moratorium on all commercial whaling in 1986. However, in
1987 Japan started to catch minke whales in the Antarctic
using a provision on the International Convention for the
Regulation of Whaling that allows countries to issue
themselves with special permits for catching whales for
'scientific' research. Now around 700 whales are killed
each year in the Antarctic and North Pacific in the name
of 'scientific research', including minke whales, Bryde's
whales, sei whales and sperm whales. All the meat and
blubber is then sold commercially within Japan.
This policy has been 'strongly and repeatedly' criticised
by the international community according to the EIA.
According to Willie Mackenzie, Greenpeace Oceans
Campaigner, the IWC has asked the Japanese government not
to do it. The scientists have repeatedly said they don't
need the data. This is simply commercial whaling by
another name. The ban on large whale hunting was used as
an excuse by the Japanese to massively increase the hunt
for unprotected whales, dolphin and porpoises (cetaceans)
in their coastal waters. In 1988, shortly after the
moratorium, the Japanese hand-harpoon catch of Dalls
porpoise shot up to over 40,000, wiping out an estimated
67% of the entire Japanese population in just three
years.
The Japanese Government allows up to 22,000 dolphins,
porpoises and small whales to be caught each year around
the Japanese coast in unregulated and unsustainable
hunts. These animals are not protected by the IWC,
however their slaughter is unnecessary and inhumane. In
an attempt to overturn IWC rulings that are unfavourable
to its whaling intentions, Japan is attempting to buy
votes on the IWC. According to Greenpeace, it has been
offering developing countries substantial quantities of
money in exchange for voting with it on whaling issues.
These countries include six in the East Caribbean,
Guinea, the Solomon Islands, Panama and Morocco. The
policy appears to be working.
A quick look at the voting record shows that their votes
exactly match those of Japan. As a result, Japan now
commands a blocking minority within the IWC. For any
major proposal to be agreed, a 3D4 majority is needed and
Japan now commands enough votes to block any further
conservation measures from going forward. The success of
this vote buying strategy was demonstrated by the defeat
of the proposal to create both a South Pacific Whale
Sanctuary and a South Atlantic Whale Sanctuary at last
year's meeting.
Such sanctuaries would represent a massive blow to
Japanese whaling interests because it would put two more
major areas of the world's oceans permanently off-limits
to whaling, ensuring that a large proportion of the
whales which feed in the Southern Ocean Sanctuary would
be protected throughout their life cycles.'Despite
Japan's determination to continue killing cetaceans, the
EIA reports that there has been a general decline in
demand for whale meat in Japan. Perhaps this has
something to do with the fact that a lot of the whales
that are killed carry high levels of pollutants including
methyl mercury and poly chlorinated biphenals (PCBs) -
apparently not good things to be ingesting with yer
chips.
In 2002, Wal-Mart purchased a 37% stake in Seiyu, Ltd.,
one of Japan's leading supermarket chains. Seiyu, Ltd. is
a major distributor of whale, dolphin and porpoise
products. Wal-Mart and Seiyu are intimately connected
through corporate governance. Five of Wal-Marts key
executives sit on the Seiyu Board of Directors, including
the President and Executive Vice President of Wal-Mart's
International Division. In 2003, Tesco acquired a 94.54%
shareholding in the Japanese food retailer C Two-Network,
making the company a member of the Tesco group.
Both Seiyu and C Two-Network stores sell canned and fresh
cetacean meats. This includes both whale and blubber meat
from the 'scientific' research as well as small cetaceans
from the coastal hunts. In 2003 the EIA carried out a
survey which discovered that all the canned cetacean
products were sourced from Japan's two major whaling
companies, Nissui and Kyokuyo. These two companies own
the majority of shares in Kyodo Senpaku, the company who
leases whaling boats to the Japanese Institute of
Cetacean Research so they can carry out Japan's so-called
'scientific' whaling policy.
Clare Perry, EIA Cetacean Campaigns Manager, said,
"C Two-Network stores are selling internationally
protected species, and as such, are not only sustaining
the market for these products in Japan, but are
supporting Japans refusal to abide by the
international ban on commercial whaling. Tesco, by
association, could be seen by the public to be condoning
these actions." Greenpeace Ocean Campaigner, Richard
Page said, "We are appealing to Tesco to use its
ownership of C Two-Network to bring about an end to the
sale of cetacean products in C Two-Network stores.
Tescos UK customers will be appalled to learn that
Tesco is so closely linked to the sale of whale
meat."
Initially Tesco ignored queries from the EIA, but
eventually responded by stating that 'it didn't want to
impose Western values on its Japanese stores'. Its
response to the Whale and Dolphin Preservation Society in
2003 on the issue of Iceland resuming whaling was
somewhat different. "We do not support the trade in
whale products and would not wish to be linked to
companies that are involved with this business"
(28th August 2003). In April 2004, Tesco alleged that the
stores selling the whale meat were subsidiaries of the
C-Two Network, and not under their direct control. The
EIA dispute this.
Japan is considered to be a difficult and important
market to get into among transnational grocery chains,
and as a relatively recent entrant, Tesco may be wary of
treading on anyone's toes. The EIA had a meeting with
Tesco on 13th May 2004 to discuss the situation.
According to EIA campaigner Clare Perry there was 'no
conclusive outcome' to the meeting. The EIA gave Tesco a
lot of information about whaling in Japan and the market
for whale meat. It is now up to Tesco is to take this
information on board and discuss it with C Two-Network.
The EIA is not expecting any rapid progress on this
issue, as it has taken five months to even get this
preliminary meeting with Tesco.
However, as Ms Perry said, "We have at least started
a dialogue, and are making it clear to Tesco that we
won't accept anything less than a total cessation of
whaling." In Autumn 2003 Iceland restarted whaling,
also under the banner of 'scientific research' and also
passing most of the proceeds of its 'research' on to
companies who just happen to give them a lot of money in
return and put said whales in cans on supermarket
shelves. With Norway also continuing to kill whales in
spite of the moratorium, perhaps it's time to get more
angry and more active. (Source: Corporatewatch)
Tesco is
considering opening cashless stores. Bosses are looking
at a scheme to encourage customers to pay only by card or
use self-service machines. The idea, currently being
tested by some European retailers, was prompted by the
growing use of plastic at the checkouts. Philip
Robbins-Jones, Tesco's IT strategic development director,
said, "The time spent by retailers handling cash is,
frankly, embarrassing." According to UK payments
association Apacs, which backs the scheme, cards
outstripped cash for the first time last year at
£273billion. Debit cards make up 69% of all card
transactions. Benefits include faster checkouts,
increased staff productivity and better security. Stores
also pay hefty sums for banks to handle their cash.
Tesco, which has about 1,000 stores in the UK, currently
makes pre-tax profits of £2billion a year. (Source: Daily Mirror)
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