Tesco is one of the worlds leading international retailers. Since the company first the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The UKs leading retailer Tesco was floated on the stock exchange in 1947 and in 1995 took over rival Sainsburys position as the UK number one. The principal activity of the group is food retailing, with over 2,000 stores worldwide. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services. The company launched a home shopping service in 2000, allowing customers to order their shopping online. Tesco is now expanding its convenience stores and overseas into areas such as Taiwan, Malaysia, Poland, the US and Ireland.

Upper graph = 12 month share price with 6 month moving average
Lower graph = 12 month volume (red line = volume average).

Tesco cuts prices to stem falling mkt share



17:34, Thursday 22 September 2011

LONDON (Reuters) - Tesco (LSE: TSCO.L - news) , the world's No.3 retailer, said it is investing more than 500 million pounds cutting prices in Britain as it tries to win back cash-strapped shoppers.

The supermarket group, which takes more than one in every ten pounds spent in British shops, said on Thursday it would cut the price of over 3,000 staple products, including milk, bread, fruit and vegetables, from Monday.

"This is a repositioning of price at Tesco," UK chief executive Richard Brasher told reporters, adding it was the biggest investment he had made in lowering prices in 25 years at the business.

The move underscores the weakness of consumer spending in Britain, where shoppers are economising on everything from clothes to groceries as disposable incomes are squeezed by rising inflation, subdued wage growth and austerity measures.

"Families are having to cut back on the staples, not just the extras," Brasher said, adding he was not assuming any improvement in trading conditions anytime soon.

It will also add to the pressure on an embattled industry, where many players benchmark their prices to the market leader.

ING analysts said J Sainsbury and online grocer Ocado were likely to suffer most because they have less financial leeway to respond than rivals such as Wal-Mart's Asda (NYSE: WMT - news) and Wm Morrison .

Tesco shares closed down 2.1 percent at 356.25 pence, outperforming a 4.2 percent drop on the STOXX 600 European retail index . Sainsbury (LSE: SBRY.L - news) 's stock ended down 4 percent, Ocado down 6.2 percent and Morrisons down 2.5 percent

MARKET SHARE

Brasher said the price cuts had been planned for six months and were largely funded by cost savings and by reducing the benefits of the group's Clubcard loyalty scheme, reassuring analysts that profit margins would not be sacrificed.

"Largely being self-funded, the initiative should at least be neutral for earnings to our minds, and if it does build volume and share, it could be more than self-financing," said Shore Capital's Clive Black.

However, Black added that cutting mainly grocery prices would not solve Tesco's problems, as it needed to improve its non-food business as well. It was also important Tesco did not weaken its appeal to more affluent shoppers, he said.

Tesco has been leaking market share for over three years as rivals have upped their game and its broad appeal has been challenged by trends towards both low-priced staples and premium foods as shoppers eat out less and cook more at home.

The group's UK grocery market share dipped to 30.4 percent in the 12 weeks to September 4 from 30.8 percent the year before, according to market research firm Kantar Worldpanel, though that is still far ahead of second-placed Asda's 17.4 percent.

Tesco, which relies on Britain to contribute about two-thirds of sales and profits, said it would cut the number of multibuy promotions and in four weeks time reduce the reward points on its Clubcard loyalty scheme.

"We're giving customers a more straightforward shop -- reducing the number of promotions and putting the emphasis on clear and reliable savings that everyone can benefit from," Brasher said.

Bernstein analyst Chris Hogbin said the strategy was a positive development, but the magnitude of the investment -- equivalent to 1.2 percent of UK revenues in fiscal 2010-11 -- did not represent a major step-up in competitive intensity.

Asda dismissed the cuts and kept its price guarantee which offers to refund customers the difference via a money-off voucher if it is not at least 10 percent cheaper than rivals.

A Sainsbury's spokesperson said: "This is classic smoke and mirrors from Tesco, giving with one hand and taking with the other. Removing double Clubcard points will save Tesco 350 million pounds."

Tesco said it would focus most of the investment on more than 1,000 own-label products, turning up the heat on branded goods manufacturers.

AT least you do not need 1 coin for their trolly's

Tesco board of directors are worried.

Up today - interims tomorrow.

skinny we may be disappointed, sell on the news.

Warren Buffet has bought another shed load

Buffett Raises Tesco Stake to 3.64%

Don't be silly yorky buffet is not stupid TSCO is a good buy I would not short it.

halifax - I'm holding these.

StockMarketWire.com
UBS upgrades Tesco from neutral to buy, target price raised from 410p to 510p. HSBC upgrades Johnson Matthey from neutral to overweight.

Tesco To Reveal Worst Performance In 20 Yrs?

Half Yearly Report.


RNS Number : 5658P

Tesco PLC

05 October 2011

INTERIM RESULTS 2011/12

26 weeks ended 27 August 2011


GOOD PROGRESS AROUND THE WORLD - DECISIVE ACTION IN THE UK
===========================================================

-- Group sales up 8.8% to GBP35.5bn(*) , up 7.3% exc. petrol

-- 6.2% rise in underlying profit before tax to GBP1.9bn

-- 12.1% increase in statutory profit before tax to GBP1.9bn

-- 3.7% growth in Group trading profit to GBP1.8bn, after GBP57m increase in Bank PPI(**) provision; 8.2%growth before Bank PPI provision increase and Hungary sales tax

-- 4.5% UK trading profit growth; 11.8% growth in Europe, 18.7% in Asia

-- US losses reduced by 23.2%; on track for sharp reduction in full year

-- Underlying diluted EPS growth of 6.0%(***) ; dividend per share growth of 5.9%

-- Further rise in Group return on capital employed expected this year

-- On track to create net 7,000 jobs in UK this year

-- Ranked highest retailer for tackling climate change in the Carbon Disclosure Project Global 500

Tesco enjoys strong profit growth in Europe and Asia
StockMarketWire.com
The UK's biggest supermarket operator Tesco said group sales were up 8.8% to 35.5bn in the half-year to 27th August, up 7.3% excluding petrol. There was a 6.2% rise in underlying profit before tax to 1.9bn.

The group enjoyed a 12.1% increase in statutory profit before tax to 1.9bn.

There was 3.7% growth in trading profit to 1.8bn, after a 57m increase in Bank PPI provision; 8.2% growth before Bank PPI provision increase and Hungary sales tax.

UK trading profit grew 4.5%; 11.8% growth in Europe, 18.7% in Asia.

US losses were reduced by 23.2%; on track for sharp reduction in full year.

Underlying diluted EPS growth was 6%; dividend per share growth 5.9% at 4.63p.

The group said it was on track to create a net 7,000 jobs in the UK this year.

Philip Clarke, CEO, said: 'I am pleased that excellent growth in Europe and Asia, as well as an encouraging performance in the United States, have supported further progress in the first half, despite the challenges of subdued demand in the UK, particularly in non-food categories.

'We are taking decisive action in key areas to strengthen our performance going forward:

First, we are making substantial changes to our core UK business to sharpen execution and competitiveness for customers - investing in price and promotions, ranging, service and store environment - in food, general merchandise, clothing and electronics;

Second, we have decided to slow the final stage of Tesco Bank systems migration to ensure it is as smooth as possible for customers and staff as we prepare for growth next year;

Third, the implementation of our plan to break-even in the US in 2012/13 is showing promising early results;

Fourth, in line with our targets to improve investment returns, we are exiting Japan, having decided we cannot build a sufficiently scalable business there.

'These actions reflect our focus on the immediate objectives I set out for the business last April and I am confident that these, combined with the strategic strength and diversity of the Group's businesses, mean we are well-positioned to make further progress during the second half.'

Story provided by StockMarketWire.com

Keep up Bernard ! :-)

lol.

In a sea of blue TSCO red

I suppose it did rise 2.6% yesterday on an otherwise big down day.

Britain's biggest supermarket Tesco (LSE: TSCO.L - news) has reported its worst performance in 20 years with another fall in sales in its half-yearly results.

TSCO v SBRY.

I am going to sell my large holding in tesco .
and boycott the shops along with some other people .
we are fade up of them employing migrants and not locals
as an investor i do not like this as migrants only spend there spare cash
in the pound shops and yes i have done my looking go on a saturday and 6 out of 10 will not speak english . no wonder the company is going bad they are shooting them selves in the foot we need to employ people who spend there wages in this country not send there money out of the UK

Director Andrew Higginson sold 350,000 @403.0 value 1,412.005 maybe he agrees with TANKER, or just doing a spot of early Chrimbo shopping? Still holds 1,502,222

mail today ABEL @COLE i have bought this product and it rots before you use it
it is not very good tasteless and not worth buying