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).

From Sky News:

City Awaits Tesco Chief's Turnaround Plan
The struggling grocer will receive just £5m for its Blinkbox media service, Sky News learns.
22:58, UK,
Wednesday 07 January 2015
Dave Lewis Tesco Boss
Tesco's Dave Lewis will set out plans to revive the company's fortunes

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By Mark Kleinman, City Editor

The new chief executive of Tesco will on Thursday set out a blueprint to revive its fortunes through a string of measures including the appointment of a new boss of its UK operations.

The plans unveiled by Dave Lewis, who joined the UK's biggest retailer last September, will face intense scrutiny in the City as investors assess its prospects for recovering from a slump in profits and an accounting scandal which saw profits overstated by £263m.

Sky News has learnt that Mr Lewis will announce that Tesco is selling its Blinkbox media business to TalkTalk for just £5m, a small fraction of the money splurged on the loss-making division it acquired in 2011.

The UK's biggest retailer will also say that it believes there are more appropriate owners for Dunnhumby, the unit which manages its Clubcard loyalty scheme, signalling a likely sale process which could value it at up to £2bn.

WPP Group, the marketing services giant, and private equity firms Advent and TPG have already expressed interest in buying Dunnhumby.

Sources confirmed that Mr Lewis will also announce plans to save hundreds of millions of pounds annually by cutting head office costs, which will trigger significant job cuts, as well as closing its final salary pension scheme.

Another key element of Tesco's transformation plan will be Mr Lewis's recruitment of a leading retail executive to run the core UK business.

One executive named as a potential candidate on Wednesday night was Ian McLeod, the commercial director of Australian retailer Wesfarmers and a former Asda executive.

Mr Lewis is unlikely to announce any plans relating to the future of Tesco's Asian or European operations, or its banking arm, sources said.

However, one piece of positive news is likely to emerge in the shape of Tesco's trading performance during December.

While the company's overall third-quarter sales are understood to have been sluggish, one adviser to Tesco said its Christmas sales had given Mr Lewis "cause for optimism".

The new chief executive is under intense pressure to deliver rapid evidence that the UK business can win back customers who have defected to discounters such as Aldi and Lidl.

He is expected to announce significant price-cutting plans, echoing moves in recent days by rivals Asda and J Sainsbury.

Mr Lewis took over from Philip Clarke, who was sacked last summer after presiding over a disastrous three-year period.

A series of profit warnings last year led Tesco to say in December that trading profit would not exceed £1.4bn for the full year ending February 2015.

The Serious Fraud Office and Financial Reporting Council are probing Tesco's profit overstatement, with a number of the grocer's executives having left or still under suspension.

The inquiries relate to payments from suppliers, with Mr Lewis set to announce new arrangements in the coming months.

Tesco declined to comment.

....................

All the above has been out in the public domain already from various industry pundits and financial commentators - with one exception:

"strong Christmas sales"

Hmmm? So Lewis can run Tesco quite well. I've been thinking how happy the local Tesco staff seem to be these days when we visit. I'm sure they are behind him with their support and I suspect too, so will be the Tesco suppliers.

I'm bullish.

Tesco joins price war as supermarket plots recovery course

Tesco has joined the supermarket price war on the day that new boss Dave Lewis is due to set out options for reviving the troubled company.

Following cuts by Asda and Sainsbury's, Tesco said it would reduce the price of some big-brand products, including Hovis, Coca-Cola, Marmite and Tetley.

Later on Thursday, Mr Lewis is expected to outline further measures to revive Tesco's fortunes.

Price cuts, job losses and asset sales are thought to be on the agenda.

more...

Trading Statement

· Investing in a better offer for Tesco customers is driving a step up in underlying business performance
· Broad-based improvement in the UK business resulting in like-for-like sales performance of (2.9)% in last 19 weeks versus (5.4)% in Q2. This includes like-for-like sales performance of (0.3)% for the six-week Christmas period
· All UK formats and categories improved like-for-like performance. In the six week Christmas period, this included:
o Grocery home shopping +12.9%, general merchandise online +22.2% and clothing online +52.4%
o Express format +4.9%, overall general merchandise +4.8% and fresh food volume growth for first time in five years
· Europe returned to positive like-for-like sales growth of +1.0% in last six weeks
· Announcing progress on our immediate priorities, including a significant cost-efficiency programme and a reduction in capital expenditure to £1bn in 2015/16
· Decision not to pay a final dividend for 2014/15

Dave Lewis - Chief Executive

"We are seeing the benefits of listening to our customers. The investments we are making in service, availability and selectively in price are already resulting in a better shopping experience. A broad-based improvement has built gradually through the third quarter, leading to a strong Christmas trading performance.

I would like to thank all of my colleagues in Tesco. The unique combination of retail expertise and real passion for the customer has been an inspiration to be a part of. In difficult circumstances the team has begun the challenging task of reinvigorating our business. There is more to do but we have taken the first important steps in the right direction.

We have some very difficult changes to make. I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation. Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results."

more...

Well so far market looks impressed, Halfords getting hammered on news, had a dabble @ 191.0 this morn but not holding my breath.

Retail analyst Nick Bubb


Tesco has announced a raft of news (including improved UK sales at Xmas, the closure of 43 convenience stores and the dreadful HQ at Cheshunt, the passing of the final dividend, the intended sale of Dunnhumby and a new lower price campaign on branded products in the UK).

The shares have jumped first thing, with Tesco playing down rights issue fears and announcing the eye-catching recruitment of Halfords CEO Matt Davies as Tesco UK boss.

The focus of the analysts meeting will be on the actions it is taking on its heavily indebted balance sheet, but we can’t see anything about the expected big UK property write-downs and, handicapped by its massive over-exposure to the hypermarket business, and with the credit rating agencies breathing down its neck, we wonder whether the eventual verdict of the City on today’s Tesco news will be “too little too late”.





http://www.theguardian.com/business/2015/jan/08/tesco-turnaround-plan-what-the-analysts-say

I still do not think Tesco has got a clue . The city is easily impressed.

Short Squeeze.

Asda could almost put up buy one get one free . Its holding company Walmart has vast reserves.Today in the U.S., Walmart operates more than 4,900 retail facilities, including 4,281 Walmart stores and 640 Sam’s Club warehouses. For fiscal year 2014, Walmart U.S. net sales were more than $279 billion, and Sam’s Club net sales were more than $57 billion. 2014 net income in us dollars 15.88B.

Well, I think Tesco (ie. Dave Lewis) does have a clue and furthermore, I think the staff believe in him and his abilities and will work very hard for him.

All of this has been witnessed by our household as and when we visit our own local Tesco supermarket.

In actual fact, it is quite a good experience. Importantly, I do like the 'self scanning way' of selecting items for the shopping bags and packing the items into them as we poddle round the store. We have time to do our shopping, look for deals and bargains - and generally find some, and never have to queue at the check out.

The place is clean and tidy, the staff are very helpful if you need them, the toilets are clean and everything is well bolted/fixed down (or up), the books are kept properly on the book shelves (this wasn't the case before Lewis). In fact, as a supermarket, the place is hard to beat.

Importantly, I'm happy with the prices and the quality of the food. They are also better than the local Sainsbury's at marketing wine.

I'm actually a 'believer'.

I still shop at all the others but Tesco is the main supermarket for us.

Which supermarket wins the shopping basket price test? Budget stores strike a blow against the giants as Aldi proves £1.87 cheaper than closest rival Asda .Published: 16:45, 8 January 2015


http://www.dailymail.co.uk/news/article-2902084/Budget-supermarkets-strike-blow-against-big-boys-15-item-shopping-basket-Aldi-proves-1-87-cheaper-closest-rival-Asda.html

I would like to see the contents of these baskets, 15 items for £14.75 !!

Edit, I've just had a look at the contents on your link dc.:-)

doodlebug :-)) This reminds me similar to the likes of Thomas Cook and Tui. There's TC cutting costs to the bone, while Tui was/is expanding with new purchases and new aircraft. Of course,short term the market likes/rewards the share price, but long term who is going to have the niche/strongest brand ? Does not need answering. Today Tesco announces the building programme is on hold and the disposal of 40 odd stores and Aldi cannot build fast enough, as soon as planning permission is granted.
Look at the great lengths the major supermarkets are having to go to get anywhere
near in price comparison and at the end of the day the prices you see above for the likes of Aldi are everyday (365) prices and not discounted. How long can the majors keep up the discounts ? What is going to happen when 550 new Aldi stores come online in the next 8 years ? The supermarkets that are trading strong today may just face footfall pressure .

Tesco spells out revival plan
By Harriet Mann | Thu, 8th January 2015 - 11:53


Finally, the cycle of bad news has been broken. Of course, the challenges facing Tesco (TSCO) are by no means over, but it's a relief to hear some good news at last from the struggling supermarket and to see the smoke around its revival plans begin to disappear. Blighted by an accounting scandal and profit warnings in the first two months of his employment, chief executive Dave Lewis will be pleased to see the share price heading north again.
Christmas hardly dazzled, but at least UK like-for-like sales fell just 0.3% over the six weeks, much better than the -3.5% expected in the City. UK sales for the entire third quarter also improved on the previous period at -4.2%. That took sales for the 19 weeks to 3 January to -2.9% and group like-for-like sales down 2.7%. The international performance was mixed.

Tesco still expects to generate the already lowered profit guidance of £1.4 billion, and, as expected, it has confirmed there will not be a final dividend this year.




Lewis took the opportunity to outline some of his plans to turn the ailing supermarket around, which include the appointment of Halford's (HFD) CEO Matt Davies as head of Tesco's UK and Ireland business. Davies, who has overseen the recovery in the bicycle and car parts retailer's share price by 127%, will join the company in June.

In a £250 million cost-cutting drive, Lewis will also shut 43 unprofitable stores, consolidate its head office in Welwyn Garden City and see significant changes to its store building programme as it slashes its capex budget. It will also try to offload Tesco Broadband and BlinkBox to TalkTalk and is exploring the options for its dunnhumby business.

Changes will be made to employees earnings and benefits, with a pay freeze and closure of the company defined benefit pension scheme to all staff. A new flexible benefits package and turnaround bonus will be introduced.

Lewis has admitted there is much more to do and although there are plans in the pipeline he has kept his cards close to his chest. Fears of a rights issue were not dismissed, just not mentioned, but Bernstein analyst Bruno Monteyne thinks it's unlikely.

"Tesco for too long failed to adapt to the changes in the UK competitive landscape (more local competition and better execution by discounters). It made matters worse by losing its value credentials and now charging 6% more than Asda. After several profit warnings, a new CEO and an accounting scandal, Tesco's troubles are now well known. Things now seem so bad that consensus implies a rights issue is around the corner ...[but] we think a rights issue is rather unlikely."

Although the £250 million cost cutting benefits will be reinvested, Barclays sees stronger sales and improving margins having an impact on profits, giving a boost to guidance. It has upgraded forecasts slightly and now reckons the supermarket will make a trading profit of £1.48 billion in the year to February 2016, rising to £1.73 billion the year after.

They key message to take from the update is simplification, says Monteyne, believing there will be less of the "smoke and mirrors of the past". A rerating of the stock looks pinned on improving sales.

"In terms of likelihood of any form of turnaround, it isn't rocket science: cut prices to close to Asda and fund it all and more by radical cost cutting. Tesco used to be great at this and even if it only succeeds at half the things it tries, it will do better than the current consensus doomsday scenario. We rate Tesco 'outperform' with a target price of £2.35."

After losing over half of its value over the last year, Tesco's share price rose by nearly 10% to just under 200p on Thursday. The shares now trade on an eye-watering 22 times earnings forecasts for 2016, a premium to all European peers except online operator Ocado (OCDO). The valuation for the year after is only slightly more palatable. UK sales will have to grow to justify anything like this rating. That, however, will take time.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

obvious blue today - city always likes redundancies and closing of pension funds ;

...Junk status to boot.

Aye good day trade though :0)

Out (for now) @ 207.54 + 15.82