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Marks & Spencer ‘to increase prices by up to 15%’ despite making post-Brexit promise


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Old 02-01-2017, 15:14
Doctor_Wibble
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Still doesn't change the fact it's gone up 50p because of the brexit disaster, as has all the products in the entire range
I think that's the question though, is it all because of brexit and the currency machinations? What's the source of the chicken, tomatoes, olives, and which of these has gone up so much that the price of the end product is up by 14.28571%?

Or is the whole thing bought ready-made from a non-UK wholesaler?
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Old 02-01-2017, 15:17
MARTYM8
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Project fear. M&S are liberal metropolitan elites who have no idea how real people live.
As you say you have to have more money than sense to buy all your food at M&S!

Clearly however this is the first time in that stores 125 year history that sterling has ever fallen in value!
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Old 02-01-2017, 15:18
jmclaugh
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I think that's the question though, is it all because of brexit and the currency machinations? What's the source of the chicken, tomatoes, olives, and which of these has gone up so much that the price of the end product is up by 14.28571%?

Or is the whole thing bought ready-made from a non-UK wholesaler?
The answer is probably a bit of both, genuine cost rises of imports due to a fall in sterling and opportunistic price rises which have nothing to do with that but businesses look to blame on Brexit.
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Old 02-01-2017, 15:26
Mark_Jones9
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Still doesn't change the fact it's gone up 50p because of the brexit disaster, as has all the products in the entire range
How is brexit and the fall in the GBP to blame for the 14% price hike? When Sainsbury's Just Cook Chicken Breast Fillets with Sunbaked Tomatoes & Olives is made in the UK with UK ingredients, the main ingredient is British chicken.
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Old 02-01-2017, 15:29
Doctor_Wibble
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The answer is probably a bit of both, genuine cost rises of imports due to a fall in sterling and opportunistic price rises which have nothing to do with that but businesses look to blame on Brexit.
Actually I think I'll add another one to the heap there, namely the logistics of a price change.

There's updates to websites, ticket changes on the shelves (and/or freezers), special offers to recalculate, and I should think printing costs too, if the packaging is pre-printed - they probably don't have to clear the shelves of the cheap ones first as normal stock rotation and barging shovellers* will cover that.
Every single price change has its own cost, never mind an entire range - that creates its own problems especially if there's an 'any 3 for 2' type thing because they all have to be changed at the same time.

Point being, price changes on such items are therefore likely to be few and far between, and larger steps as a result. Do we know when they last put the price up of those?



* you know the sort, you are just about to grab one, someone barges in and starts shovelling their way through looking for more stickered items that aren't going to be there, and then you are left trying to find the one undamaged one while the staff think it was you wot done it.
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Old 02-01-2017, 15:42
Maxatoria
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How is brexit and the fall in the GBP to blame for the 14% price hike? When Sainsbury's Just Cook Chicken Breast Fillets with Sunbaked Tomatoes & Olives is made in the UK with UK ingredients, the main ingredient is British chicken.
Just because the chickens are grown in the UK doesn't mean the company that runs the farms is based in the UK and thus requires payment in euro's.
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Old 02-01-2017, 15:55
ShaunIOW
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He's telling the truth. As I just posted, other supermarkets have already started increasing their prices from today.

The cold hard truth is going to start hitting people like a ton of bricks from today.
Prices have been going up for some items in supermarkets for the last few years (and things getting smaller) which is nothing to do with Brexit - a lot of prices rises are just going to be opportunistic as the companies can blame the Brexit vote now, and can raise them again and blame Brexit when it actually happens, and the rage will not be directed at the companies themsleves as everyone will have been primed by all the doomsayers and their self-fullfilling prophercies.
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Old 02-01-2017, 16:00
MajorZero
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Do we know when they last put the price up of those?
The first monday of the year has actually always traditionally been a day when you get big price rises due to inflation following the previous year. For instance train fares up today which have nothing to do with Brexit.
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Old 02-01-2017, 16:09
tiggertiny
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i admit I have never bought anything from M&S as they overcharge for everything my view but my mother used to buy clothes there until they started sourcing coats and stuff from low cost Asian suppliers whilst at the same time putting up their prices to customers.

I recall her walking out in disgust without the coat she had had in her hand until she saw where it was made. She has never gone back.
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Old 02-01-2017, 16:20
Thiswillbefun
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People who care about this - even if they personally can afford an extra 50p on M&S ready meals - should not buy them. Market forces and all that.
The most sensible shopping you can do is buy 'freeze on day of purchase' via offers, and those items reduced because 'use by date' is approaching. This also cuts down on wastage - the amount of fresh food thrown away in GB is horrendous. This way you only buy or get out of the freezer what you are definitely going to consume within 24 hours and save money.
Market forces.

British business puts its prices up, loses customers to Lidl & Aldi.

British business closes stores making staff redundant.

German businesses Aldi & Lidl open more stores and take on more staff.

Money drained from the British economy in the form of payments to senior staff, dividends etc.
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Old 02-01-2017, 16:27
Ads
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i admit I have never bought anything from M&S as they overcharge for everything my view but my mother used to buy clothes there until they started sourcing coats and stuff from low cost Asian suppliers whilst at the same time putting up their prices to customers.

I recall her walking out in disgust without the coat she had had in her hand until she saw where it was made. She has never gone back.
To be fair though, how many high street stores sell clothes made in the UK? Hardly any mass produced clothes are made in this country.

As for M&S food, a lot of it is pretty overrated. Much prefer Waitrose which has a much better choice.
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Old 02-01-2017, 16:31
Mark_Jones9
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Just because the chickens are grown in the UK doesn't mean the company that runs the farms is based in the UK and thus requires payment in euro's.
I would assume supermarkets would pay in GBP for food products made in the UK using UK produce. Otherwise its UK consumers pay in GBP, supermarket converts GBP to Euros and pays supplier, supplier converts Euros back into GBP to pay their production costs.

In any event as the consumer is paying in GBP and the production costs are in GBP there is no reason for a price hike based on currency exchange rates.
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Old 02-01-2017, 16:38
Thiswillbefun
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I'm pretty confident that :

Theengineer is Anna Soubry
Aurichie is Nick Clegg
Thiswillbefun is Tim Farron
Trevgo is Bob Geldof
NetNut is Ken Clarke
Oleo Strut is Jean Claude Junker
While not a Lib Dem supporter I'm quite happy to be placed as Farron, especially looking at the names on the opposite side.
Gove, Leadsom, Farage, IDS, May (not the Brian variety) etc.
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Old 02-01-2017, 17:07
Union Jock
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Sainsbury's have already started jacking up their prices from today. Some of the meals I buy have gone from £3.50 to £4.00. Various other meats and products are 10-15% more expensive. Various loaves and batons are 10% more expensive.

.
I was in my local one today and saw none of the changes you're claiming.

Some special offers have finished but no overall price increases.
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Old 02-01-2017, 17:13
KIIS102
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Who's the CEO of M&S, Nick Clegg?
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Old 02-01-2017, 17:18
Maxatoria
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I would assume supermarkets would pay in GBP for food products made in the UK using UK produce. Otherwise its UK consumers pay in GBP, supermarket converts GBP to Euros and pays supplier, supplier converts Euros back into GBP to pay their production costs.

In any event as the consumer is paying in GBP and the production costs are in GBP there is no reason for a price hike based on currency exchange rates.
A lot of bigger companies use currency hedging to fix the basic price for a period so probably that time has run out and a new agreement is needed and the deal isn't as good as the old one so its either they absorb the costs or put up prices and at 15% I doubt many companies could absorb that sort of price changes.
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Old 02-01-2017, 17:24
Parker45
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Prices have been going up for some items in supermarkets for the last few years .
Prices haven't gone up in supermarkets in recent years. They've been static or falling.
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Old 02-01-2017, 17:30
Mark_Jones9
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A lot of bigger companies use currency hedging to fix the basic price for a period so probably that time has run out and a new agreement is needed and the deal isn't as good as the old one so its either they absorb the costs or put up prices and at 15% I doubt many companies could absorb that sort of price changes.
As the consumer is paying in GBP and the production costs are in GBP there is no reason for a price hike based on currency exchange rates.

I would assume supermarkets would pay in GBP for food products made in the UK using UK produce. Otherwise its UK consumers pay in GBP, supermarket converts GBP to Euros and pays supplier, supplier converts Euros back into GBP to pay their production costs. Which adds pointless costs, risks and complexity.
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Old 02-01-2017, 17:44
Maxatoria
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As the consumer is paying in GBP and the production costs are in GBP there is no reason for a price hike based on currency exchange rates.

I would assume supermarkets would pay in GBP for food products made in the UK using UK produce. Otherwise its UK consumers pay in GBP, supermarket converts GBP to Euros and pays supplier, supplier converts Euros back into GBP to pay their production costs. Which adds pointless costs, risks and complexity.
We don't know the details of the contracts between M&S and the manufacturer of the meals, the chicken supplier or even the feed supplier down the line so all we can do is guess..for all we know there could be an olive famine and the price of them has gone up 1000%
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Old 02-01-2017, 17:51
tiggertiny
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To be fair though, how many high street stores sell clothes made in the UK? Hardly any mass produced clothes are made in this country.

As for M&S food, a lot of it is pretty overrated. Much prefer Waitrose which has a much better choice.
I'm talking many years ago when M and S bought British made clothes then changed to cheap Asian imports but guess what the prices didn't go down but the profits went up.

A lot of High street shops sell foreign clothes but they don't charge M and S prices.
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Old 02-01-2017, 17:53
TheEngineer
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As the consumer is paying in GBP and the production costs are in GBP there is no reason for a price hike based on currency exchange rates.

I would assume supermarkets would pay in GBP for food products made in the UK using UK produce. Otherwise its UK consumers pay in GBP, supermarket converts GBP to Euros and pays supplier, supplier converts Euros back into GBP to pay their production costs. Which adds pointless costs, risks and complexity.
It would depend on the product. There was a report a few years ago of Scottish prawns being shipped to Thailand where they were hand peeled before being shipped back to the UK. There are numerous other examples. Coffee from Africa being packed in India, Cockles from Wales being pickled in Holland and then sent back to the UK.
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Old 02-01-2017, 18:00
Nodger
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I'm pretty confident that :

Theengineer is Anna Soubry
Aurichie is Nick Clegg
Thiswillbefun is Tim Farron
Trevgo is Bob Geldof
NetNut is Ken Clarke
Oleo Strut is Jean Claude Junker
Izzard?...
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Old 02-01-2017, 19:23
Doctor_Wibble
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It would depend on the product. There was a report a few years ago of Scottish prawns being shipped to Thailand where they were hand peeled before being shipped back to the UK. There are numerous other examples. Coffee from Africa being packed in India, Cockles from Wales being pickled in Holland and then sent back to the UK.
I remember the prawns one and the cockles one seems familar but I can't find a ref for the coffee one?

Prawns, 2006, due to be shelled in Thailand
http://news.bbc.co.uk/1/hi/scotland/...nd/6150240.stm

Cockles, 2013, being pickled in the Netherlands
http://www.walesonline.co.uk/news/wa...-miles-2252809
e2a: this one does mention the others and a few more besides - haddock in Poland, Canadian prawns in Iceland (the country), Bolivian nuts in Italy...

Not surprised about the Netherlands as that's where all that Italian food is made
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Old 02-01-2017, 19:37
Mr Oleo Strut
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Just because the chickens are grown in the UK doesn't mean the company that runs the farms is based in the UK and thus requires payment in euro's.
Exactly, the complexities of everyday international trade mean that it is often impossible to know exactly who produces, packs, manufactures. owns, pays tax on (if at all) just about anything. Even familiar household name stuff is often made, bought and paid for in foreign currency without lazy Little Englanders having to lift a finger. Statistics are elastic and managed to suit the whim of the moment. Often those logos flying the flag or with jolly English names and idyllic farming scenes cover up a very murkey trail from farm to consumer. Nothing is straightforward anymore.
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Old 02-01-2017, 20:00
TheEngineer
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I remember the prawns one and the cockles one seems familar but I can't find a ref for the coffee one?

Prawns, 2006, due to be shelled in Thailand
http://news.bbc.co.uk/1/hi/scotland/...nd/6150240.stm

Cockles, 2013, being pickled in the Netherlands
http://www.walesonline.co.uk/news/wa...-miles-2252809
e2a: this one does mention the others and a few more besides - haddock in Poland, Canadian prawns in Iceland (the country), Bolivian nuts in Italy...

Not surprised about the Netherlands as that's where all that Italian food is made
Think it was The Times - so behind a paywall now

Edit - found a reference to it:
http://www.airportwatch.org.uk/2007/...to-be-shelled/

Last edited by TheEngineer : 02-01-2017 at 20:03. Reason: Found what I was looking for
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