retail news in context, analysis with attitude

• In the UK, the Guardian reports that Tesco has been raising the prices of "its most affordable water and fizzy drinks amid a surge in sales as thirsty shoppers try to cool down during the hot spell.

"The UK's biggest supermarket raised the price of its two-litre bottles of Everyday Value water and cola by 41% to 24p last week, putting it well ahead of rivals Asda, Sainsbury's and Morrisons ... The price rise came amid fears of bottled water shortages, with sales in overdrive as the nation tries to cope with temperatures soaring above 30C in parts of the country."

While critics pounced on Tesco for exploiting the heat wave for profit, the retailer maintained that it was just keeping up with the cost of production.
KC's View:
Gee, it was just yesterday tat Tesco CEO Philip Clarke was quoted as saying that the era of cheap food in the UK was over, because of the basic laws of supply and demand.

Not sure that this is exactly what he meant, but he's certainly being consistent.

It is kind of extraordinary to watch a great company like Tesco suffer from so many PR black eyes, over and over and over. It is like they can't get out of their own way.