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).

Proactive investor - Cantor Fitzgerald fears the results could be “very disappointing” for investors, adding that, in complete contrast to Sainsbury, it expects Tesco to issue more profit downgrades.

What, it says, is key for investors to watch for, is the strategy presented by “Drastic Dave” to rebuild cash generation and reduce debt by 2020.

The broker reckons this plan needs to be “very convincing” if Tesco is to avoid a rights issue and maintain the current share price.

Half Yearly Report

Transformation on track

Broad-based improvement across the Group


· UK 1H like-for-like sales performance of (1.1)%, including further improvement in 2Q

· International 1H like-for-like sales growth of +1.0%; both Europe and Asia positive in 2Q

· UK focus on service, availability and price maintaining momentum in challenging market

- Transactions up +1.5%; volumes up +1.4%

· £354m Group operating profit - investing for customers and rebuilding profitability in UK

· On track to deliver £400m annual cost savings from Group restructuring investment

· Significant progress made on balance sheet priority with sale of Homeplus in Korea and confirmation of move to defined contribution pension scheme in UK

· Portfolio reshaping concluded; dunnhumby retained; firm focus on generating cash from retained assets

Dave Lewis, Chief Executive:


"We have delivered an unprecedented level of change in our business over the last twelve months and it is working. The first half results show sustained improvement across a broad range of key indicators.

In the UK, we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment.

Our transformation programme in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions.

We have concluded our portfolio review with the sale of Homeplus, our business in Korea, enabling us to take a significant step forward on our priority of strengthening the balance sheet. Further progress will be driven by continuing to increase the level of cash generated from our retained assets."


more...

Certainly hasn't tanked so far on interim result, depends if the market believes or has confidence in the main man. Buy order left on spreads @ 194p if triggered tight stop.

LATEST BROKER VIEWS

Date Broker New target Recomm.
7 Oct Cantor... N/A Under Review
7 Oct Exane BNP... 230.00 Outperform
6 Oct Barclays... 240.00 Equal weight
5 Oct Cantor... N/A Under Review
5 Oct JP Morgan... 150.00 Underweight
30 Sep Jefferies... 185.00 Hold
24 Sep Nomura 210.00 Neutral
17 Sep Exane BNP... 230.00 Outperform
15 Sep Kepler... 176.00 Hold
8 Sep Exane BNP... 230.00 Outperform
Broker Recommendations for Tesco

analysis-good-start-but-still-lots-to-do-for-tesco-boss

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Additionally, the pension deficit rose to £4.2bn, from £3.9bn at the end of the first half of the year

Attempting to breach 200p. Stop to entry for risk free trade.

LATEST BROKER VIEWS

Date Broker New target Recomm.
8 Oct Beaufort... N/A Hold
8 Oct Jefferies... 185.00 Hold
8 Oct Barclays... 225.00 Equal weight

-tesco-boss-dave-lewis-has-a-good-reason-for-not-buying-the-supermarkets-shares-

LOL dc, keep putting the fuel in, probably haven't got long before this dives again.

With the sell offs he has created a small breathing space . Still some very large issues to address . I agree with the above, that with the on going investigations how can he buy shares . Nice to see him dig deep when they are over.

Tescos-Dave-Lewis-buy-shares-one-day-after-saying-he-was-barred.

It would appear the guy can't win. Damned cause he didn't buy, damned cause he has now. :0)

True Chris. Perhaps should of purchased within a month or so of being given the position.
Soon be forgotten.

Stop to 199.

Pointless its not the Uk supermarkets doing the damage.




Company News

Tesco launches immediate price match guarantee

Mon, 12 October 2015




Tesco launches immediate price match guarantee



Tesco Quote more






Price: 201.80

Chg: -3.00

Chg %: -1.46%

Date: 16:09



FTSE 100 Quote


Price: 6,363.03 Chg: -53.13 Chg %: -0.83% Date: 16:10

(ShareCast News) - Tesco will become the first UK supermarket to offer immediate price matching at its tills to ensure customers never pay more for their branded shop compared with other leading supermarkets.
The new 'Brand Guarantee', which is a direct result of feedback from Tesco's customers and has already been trialled in Northern Ireland, compares the overall cost of a branded grocery shop against what it would have cost at rivals Asda, Morrisons and Sainsbury's.

If the shop would have been cheaper elsewhere, customers will have the difference taken off their bill immediately, both in store and online. The scheme will also price match against promotions at Tesco's main competitors.

Matt Davies, chief executive officer of Tesco UK and Ireland said: "Shoppers tell us price matching vouchers are a pain and don't really help them. We all know it can be stressful and awkward when you have to rummage through your wallet to find a price match voucher.

"That's why we're ensuring that with Brand Guarantee customers will never lose out on their branded shop by getting money off their bill at the till. We're working hard to make the shopping trip that little bit easier for customers, with simple, affordable prices you can trust. Brand Guarantee is one more way we are taking the hassle out of a trip to the supermarket or an online shop."

The move by Tesco comes as new research revealed the extent to which price match vouchers were failing to meet customers' needs, with UK customers potentially missing out on hundreds of millions of pounds in savings each year.

According to the research, which explored the views of shoppers from across the supermarket spectrum, over a third of Britain's supermarket shoppers have never used a price matching scheme in-store, rising to 80% online.

At 1210 BST, Tesco shares were down 1.2% at 202.45p.

Company News

Tesco loses share as supermarket sector prices fall further, says Kantar

Tue, 20 October 2015





Sainsbury (J) Quote more






Price: 265.90

Chg: 2.30

Chg %: 0.87%

Date: 16:30



FTSE 100 Quote


Price: 6,353.82 Chg: 1.49 Chg %: 0.02% Date: 16:29

(ShareCast News) - The supermarket price war was continuing to rage in full force to the benefit of consumers, who were opting to pocket the savings, survey compiler Kantar Worldpanel said.
In the 12-week period ending on 11 October overall supermarket sales were up by only 0.8% in comparison to a year ago, while like-for-like grocery prices were 1.7% lower.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, highlighted how like-for-like grocery prices had now fallen for 12 consecutive months.

Together with overall volume growth of only 2%, that equated to an average annual saving of £58 for each household.

Sainsbury's sales increased 1.1% to £3.96bn, thanks to a strong showing from online and local stores, but Tesco (-1.7%), Asda (-3%) and Morrisons (-1%) all registered a decline.

At discounters Lidl and Aldi it was a different story, with the rate of growth in sales rebounding to above 17%, rising by 17.9% and 17.6%, respectively.

The market shares of Lidl and Aldi improved to 4.3% and 5.6%, respectively, from 3.7% and 4.8% one year ago.

Tesco's market share dropped to 28.1% from 28.8%, Morrisons to 10.8% from 10.9% and Asda's to 16.6% from 17.3%, while Sainsbury's remained at 16.1%.

This mirrors the findings of similar research also released on Tuesday by Nielsen.

Kantar flagged the expected full-launch of Amazon Fresh early in 2016, which could "be a major disruptor, bringing down average basket sizes, accommodating on demand shopping, and accelerating the growth of the whole online market," though City analysts have been undecided over how this new entrant will effect the market but generally feel it will benefit online specialist Ocado.

I'm afraid it is no different for any other retailer.



Business rates and the national living wage risk crushing Tesco, the supermarket’s chief executive has warned, as the extra costs amount to a “potentially lethal cocktail".


Tesco-faces-potentially-lethal-cocktail-of-business-rates-wages-hikes-and-poor-profits.

tesco-and-asda-take-sales-hits-in-discount-battle

Tesco agrees to settle US class action

StockMarketWire.com

Tesco has reached agreement in principle to settle a class action begun in New York on behalf of the holders of the Company's American Depositary Receipts (ADRs) for USD12m.

ADRs represent about 2% of Tesco's total issued ordinary shares.

The class action was against the Company and certain of its former directors and alleged breaches of certain U.S. federal securities laws in connection with the overstatement of commercial income which was announced in September 2014.

The settlement agreement, which is subject to confirmation by a federal court in New York, provides for Tesco to pay US$12 million to settle the class action with no admission of liability.

This agreement, if confirmed, will settle one of two claims before US courts arising out of the commercial income overstatement. The other claim is brought in Ohio by the remaining holders of ADRs equivalent to less than 0.2% of the total issued ordinary shares of the Company.



Story provided by StockMarketWire.com

Perhaps we in Britain can get something back from the Directors, too ? - except any Fines are paid-for by shareholders, aren't they?

No wonder Directors think they are a Class-apart! ( did anyone mention Politicians ? )