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 withholds £2m pay-out to former bosses
Tesco suspends payments to Philip Clarke and Laurie McIlwee as accounting scandal sparks 92pc fall in profits
Telegraph.co.uk
By Graham Ruddick, Retail Editor
10:35PM BST 23 Oct 2014

From: http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/11183871/Tesco-withholds-2m-pay-out-to-former-bosses.html

Tesco is withholding payouts totalling £2m to Philip Clarke and Laurie McIlwee, its former chief executive and chief financial officer, as Britain’s biggest retailer reels from the discovery of a £263m shortfall in its profits.
The company revealed that it was suspending payments due to Mr Clarke and Mr McIlwee as it reported a 92pc fall in pre-tax profits following the accounting scandal and slide in UK sales.
Sir Richard Broadbent, chairman of Tesco, said he would step down as result of the crisis. Sir Richard insisted he was “not being pushed to go” but wanted to “draw a line” under the scandal. He is expected to leave the company next year.
“On behalf of the board, to demonstrate to the world that principles exist, I choose to go,” he said. “You can’t really say that nobody’s carrying the can.”
Shares in Tesco fell 12, or 6pc, to 171p on the back of the results. More than £1.1bn was wipe off the value of food retailers, with shares in J Sainsbury and Wm Morrisons also declining.
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Clive Black, analyst at Shore Capital, said: “We can never recall a period so damaging to the reputation of the company.”
Tesco has been rocked by the biggest crisis in its history after a whistleblower alerted new chief executive Dave Lewis to a black hole in the company’s profits.
Tesco said that accounting firm Deloitte had completed an investigation into the scandal, with the findings now in the hands of the Financial Conduct Authority, the City regulator.
The company declined to comment on the causes of the black hole, saying it will leave the FCA to establish where the responsibility lies.
Tesco has already suspended eight executives, including UK boss Chris Bush, as part of the investigation and revealed yesterday that it will also withhold payments to its former management team.
Mr Clarke, who was in charge for the period under scrutiny and stepped down as chief executive at the end of August, is still being paid his full £1.1m salary. However, he was in line to receive a further 12-months pay in a lump sum in January as part of his exit agreement. This will now be withheld, as will a similar £880,000 payment which was due to be made to Mr McIlwee, who left Tesco in April, within weeks.
Mr Lewis said Tesco was “withholding” the payments until the FCA’s investigation is complete. Referring to Mr Clarke, he said: “I don’t know what he did or didn’t see. That is a matter for the FCA.”
Mr Lewis he planned to get Tesco back on track by returning the retailer to its roots. He has already added 2m more staff hours to the company’s stores and also wants to improve availability. Once these improvements are in place, Mr Lewis added, then he will “consider” price cuts.
The new Tesco boss also confirmed that the company will consider selling off assets in order to improve its financial headroom in the wake of the fall in profits. However, he played down the prospect of a rights
Mr Lewis said: “The first port of call is that we think there is much more we can do to release value. We will go there and extract value first. We are not currently working on a rights issue.”
Tesco reported that pre-tax profits fell by 92pc to £112m for the 26 weeks to August 23. This included a 4.6pc fall in like-for-like sales and a 56pc fall in trading profits in the UK.

Dc i could have helped Tesco when they sat round the boardroom table a few years ago and decided lets go in to the USA ,i would have said are you mad ! ,it cost them a billion pounds .
They could have given me 50 mil for my advice ,job done . Saved themselves a fortune . I'm available for hire and advice if any big companies are reading this ..
I mean to say i always get the FTSE somewhere near most months !!!..

Lol :-))

it never ceases to amaze me how many retailers think they can expand all over the world, and are then staggered and bewildered when they find they've got it all wrong, having failed to account for the different cultures and tastes

I've had enough bad investment experiences over the years to know that it should be a basic rule of investment that you sell as soon as a UK company'expands' (LOL) into the States.

Tesco: Deutsche Bank cuts target price from 220p to 180p and retains a hold recommendation. JP Morgan cuts target price from 165p to 145p staying with its underweight rating. Espirito Santo cuts target price from 165p to 145p reiterating its sell recommendation.

What about US company's coming here, are they more successful ?

Asda is a subsidiary of the American retail company Walmart. They do not seem to have the killer instinct of Tesco. With Walmart being so large they could have a MASSIVE PRICE WAR with our supermarkets . Asda are not being hurt so much as Tesco and Sainsbury.

Also you will find Asda was the first of the "big four" to commit to lowering prices significantly late in 2013. In other words they did not sit and watch business walk out the door to the likes of Aldi, Lidl etc. I get the feeling Tesco never knew what hit them.

but i now see asda are being hammered for equal pay between the men and women who work in their shops

So they should. :-))

It was a good job that Tesco expanded its credit facility in Sept . Did they think/know
rating downgrades were coming, and the result being much harder to borrow cash.

I have read they own £24 billion in property.

Asda plan to open a lot of new stores .
I for one have been shopping there recently (instead of Morrison) it looks to me like since Walmart bought Asda they have brought their style of retailing here, deals on everything ,i think some years down the road they could emerge as the big boy ..

Yep jimmy, they have a slogan something like the cheapest store for the last 16yrs.

Found it - Britain's Lowest Priced Supermarket, 16 Years Running

Sorry you 2 guys are caught up in this unfortunate situation. DC and Jimmy.

Ive explained if they trash my thread I do like wise to theirs. Enough is enough and they have been doing it now for nearly a month.

Sorry lads.

Sad goldfinger, but I would back anyone that sadly the management don't get involved and nip things EARLY in the bud.

Should have been sorted 22 days ago.

Even now today after all that crap and they wont ban but put up thread rules which have been clearly breached. Pathetic.

No need to be sorry to me GF ,
however in the 10 years i have been on here you were on of the first people i got talking to and i have always been interested in your views and research .
Why bother ? surely you will end up getting banned

please don't put yourself in the position whereby you get thrown out ..... that would be sad