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).

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

Went to Aldi Xmas eve expecting it to be heaving , but it wasn't . Lots of turkeys unsold . Went again after their 2 days off turkey area cleared completely , so they were lost out of date . went last night a special buy day but very quiet , lots of Xmas stuff unsold , and place full of old special buy stuff . It did look well shopped , maybe they got Xmas wrong.

Jefferies International Hold 204.70 - 195.00 Reiterates

Barclays Capital Equal weight 204.70 205.00 205.00 Reiterates

Kepler Cheuvreux Hold 204.70 - 156.00 Reiterates

Beaufort Securities Hold 204.70 - - Retains

Deutsche Bank Hold 204.70 180.00 180.00 Reiterates

Moody's downgrades Tesco debt to 'junk'

Well! so much for the doomsters eh? (Moodys - spit!). Good to see buy low sell high still alive. :0)

That little speech above was a rant to myself for being led by the crowd and bailing out too early.

Tesco out, Aldi in – discount retailer reveals plans for Walton next to Tesco’s abandoned site


http://www.eadt.co.uk/business/tesco_out_aldi_in_discount_retailer_reveals_plans_for_walton_next_to_tesco_s_abandoned_site_1_3920177