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).

Tensions between two of Britain's biggest supermarket chains burst into the open today when an executive at Sainsbury (LSE: SBRY.L - news) 's urged City analysts to question market-leading Christmas sale figures produced by rival Tesco (Other OTC: TSCDY - news) .

In an email sent to food retail analysts, a copy of which has been sent to Sky News, a senior member of Sainsbury's investor relations team accused Tesco of being "a bit disingenuous" when it reported UK like-for-like sales growth for the six weeks to January 5 of 1.8 per cent.

The allegation referred to the fact that Tesco's headline sales number was based on an accounting rule that allows it to include sales where customers have used Clubcard vouchers.

"I thought it worth pointing out that the UK [like-for-like] number of 1.8pc that Tesco are reporting this morning is non-IFRIC compliant," the email said. "This is a bit disingenuous, they should be using the 1.4pc number in their headline. All of our reported numbers are IFRIC compliant, as they have to be under IAS18!"

Sainsbury's yesterday reported like-for-like sales growth over a longer period of 0.9 per cent. Sources said that if it had used the same accounting benchmark as Tesco and included sales using points under its Nectar loyalty scheme, its growth figure would have been 1.4 per cent.

Tesco insiders said that Sainsbury's was attempting to "smear" its Christmas trading performance.

Philip Clarke, Tesco chief executive, declined to comment this morning on the performance of its competitors, saying that he was focused on "building a better Tesco".

The row underlines the heightened sensitivity within Britain's biggest food retailers about their performance in a lacklustre UK economy.

It also highlights the difficulty of relying on a measurement such as like-for-like sales, which gives little clue about the profitability of a business during a given period. The numbers announced by Tesco this morning covered 42 trading days, while Sainsbury's statement covered 98 days, further pointing to the danger of relying on comparisons which can be misleading.

The respective Christmas trading statements of Sainsbury's and Tesco contained few surprises. Analysts had expected Tesco to rebound from a dire festive period in 2011-12, when it had to issue its first profit warning for decades, while Sainsbury's has seen like-for-like sales grow for 32 consecutive quarters under the leadership of Justin King, its chief executive.

So far, Marks & Spencer (Other OTC: MAKSY - news) , which saw clothing sales fall by nearly 4 per cent over Christmas, and Wm Morrison, the supermarket group, have been the biggest losers from a tough Christmas. At the other end of the spectrum, Next (Other OTC: NXGPF - news) and John Lewis Partnership registered a performance that was well-received by investors.

It is far from unusual for companies to raise questions about the performance of their competitors with City analysts, although it is less common for those suggestions to find their way into the public domain.

Tesco and Sainsbury's both declined to comment further.

no let up, buffett's got brains..

Chase me down a beef burger!


'Horsemeat beef burgers' investigated in UK and Ireland

Investigations are under way to try to find out how beef burgers on sale in UK and Irish Republic supermarkets became contaminated with horsemeat.

Irish food safety officials, who carried out tests two months ago, said the products had been stocked by a number of chains, including Tesco and Iceland stores in the UK.

They said there was no human health risk and the burgers had been removed.

Tesco said it was "working... to ensure it does not happen again".

Hmmmm - Buy Equestrian from Tesco Direct

stop horsing around skinny.,.

I dont see the big deal, horse meat is still part of a STABLE diet

Horse DNA has been found in some beef burgers being sold in UK and Irish supermarkets, the Republic of Ireland’s food safety authority (FSAI) has said.”

That explains it. My friend is still in hospital after having a burger from Tesco. Thankfully he is in a stable condition. I had one as well but all I got was the trots.

I mean what with Tesco’s falling profits and now this, they won’t be in business furlong.

nice legs.,.

I'm saddled with these in my SIPP!

Tesco burger relish :-

In the mane there will be nothing to worry about, don’t be shire, ketamine for the weekend coz they won’t be around furlong. A pal-o-mino, called Ed, has told me there canter be any problems, though the board at Tesco will be equine into their beer at the reaction of the neigh sayers.

They can dressage it up as much as they like but the public won’t give a stampede of approval.

In a straw poll, 8 out of 10 people couldn't tase the difference!

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Unlike this case - that was never proven to be true.

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Those 2 words have different connotations for me!

now then skinny :0

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Similar!

:-)

KETTYLE BEEF

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