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).

I would like to think that a rise in the value of the sp is due....

http://www.guardian.co.uk/business/2012/mar/13/tesco-pension-changes-work-longer-cpi

Tesco bebe is up a bit.....just has to climb further.....

Tesco's UK Boss 'To Quit Over Poor Sales'




http://uk.news.yahoo.com/tescos-uk-boss-quit-over-poor-sales-221236200.html

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Sky News city editor Mark Kleinman said: "What this all adds up to is a sign that all is not well at Tesco

http://www.ft.com/cms/s/0/16308974-6e2e-11e1-b98d-00144feab49a.html

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For Gods sake Dream get a grip. Sure Tesco are having it rough at the mo, are they likely to go bust? I don't think so! What's with the constant deramping are you bored. Stick to your daily ramping of Range Resources your good at that mate, yawn!

Thats not the point cc

So exactly what is the point DC?

You do get bitter, i cannot help bad news

DC - Trust me I am not bitter, just bored with your constant drivel. :O)

Taken my drivel off cc

No offence meant DC.

Annoyed with the board of directors.

DC - I know mate, patience is the key, they will turn it around eventually.

So this is what the night shift get upto! :-)

Here you go DC.




Failed strategy: Mr Brasher was behind Tesco's 'Big Price Drop' campaign, which failed to deliver the boost in sales and profits the company was looking for.



RNS Number : 4039Z

Tesco PLC

15 March 2012


directorate change

As a consequence of Philip Clarke's decision to take a much closer involvement in the UK business Tesco plc announces today that Richard Brasher has decided to step down from the Board with immediate effect and to leave the Company in July once he has effected a smooth transition of the UK business to Philip.

Philip Clarke said: "I have decided to assume responsibility as the CEO of our UK business at this very important time. This greater focus will allow me to oversee the improvements that are so important for customers. I completely understand why Richard has decided to leave and want to thank him for the great contribution he has made over many years. The depth of management at Tesco and the strong leadership team across the Group allow me to take a more active role in the UK whilst our other businesses continue to grow.

"Richard has been an architect of our successful format strategy; a true innovator with both Clubcard and the dunnhumby partnership; and over the last ten years has led the transformation of our non-food business and the creation of International Sourcing.

"He will leave behind a UK business which has very strong plans for improvement, and over the last two months these plans are beginning to show progress, in line with our expectations. I am more determined than ever that these improvements in the UK will result in a better Tesco and an even better shopping trip for customers."

-ENDS-

Tesco's Brasher departure highlights scale of problems in competitive UK market

Thursday, March 15, 2012 at 9:15PM

After 26 years of service and 1 year as Head of the Tesco's UK business, Richard Brasher today announced his resignation from the company. Chief executive and successor to Sir Terry Leahy, Philip Clarke, will takeover Brasher's responsibilities in the short term in addition to his own.

After a crushing profits warning in January which led to Tesco shares falling from over £4 to just over £3 at one stage, the architect of the "big price drop" strategy was forced to fall on his sword after rumours of differences between Brasher and Clarke. Despite investing £500 million in the discount promotion it failed to stop competitors, notably Sainsbury, from taking market share over the Christmas 2011/12 period with aggressive voucher promotions.

Despite a heavy weight investment by Warren Buffett, Tesco is facing signficant difficulties. It has failed to spend enough on its store infrastructure to boost its bottom line. It is seen as the "Walmart of the UK" in terms of its aggressive tactics with suppliers and loathing by independent retailers. Many see Tesco and its senior management as too arrogant with its position as Britain's biggest retailer and largest private sector employer with 260,000 people as unassailable.

Other supermarket groups such as Waitrose, Morrisons and Sainsburys have taken share from Tesco in recent months by focusing on their food offering and added innovation to the piece. Waitrose indulgence but now also value, Morrisons food freshness and Sainsbury's choice and competitive price. Shoppers have found Tesco stores sterile and even tatty and the brand is now beginning to be seen as increasingly down market versus Sainsbury which under Justin King is performing strongly. Tesco have focused on cost reduction as a weapon to drive earnings growth, but this tactic can only work for so long. Shoppers have to be enticed into Tesco stores week after week and uninspiring promotions, confusing fixture layouts and dull fascias are not advisable. Loyalty in this sector is key.

There is still much going for Tesco on the other hand. Tesco.com is one of the world's largest online food/merchandise retailers, it has an impressive presence in European and Asian markets, its US Fresh and Easy operation seems to be turning the corner and it still has a 29.7 percent share of the UK market, though down from 30.3 percent a year earlier. But the the UK is by far Tesco's most important market, contributing two thirds of sales, followed by Asia with 17%, and continental Europe at 16%.

For those investors like Buffett who have patience, and have the benefit of a 4% dividend yield, Philip Clarke may yet pull of a transformation. But don't expect results any time soon as the competition aren't taking the heat off Tesco that's for sure. Back to basics is the key, what is the company's marketing proposition? Why should you shop at Tesco rather than Sainsbury? If it just comes down to price, it doesn't leave them much room for manoeuvre.

http://www.contrarianuk.com/