Tesco: woes continue
One of their key shareholders, Harris Associates, has sold nearly two thirds of its stake in the beleagured supermarket.
The American investment fund Harris Associates, had been Tesco's seventh largest shareholder.
Chief exec David Herro told the Sunday Telegraph “We have sold, in the last month, probably two thirds of our position
“With so many unknowns … those risk factors are just too high to justify a big position.”
This comes after Tesco issued its second profit warning in two months, and estimating that annual profits are more likely to be 25% lower than last year. Continuing a three year decline.
It's probably not the ideal welcome for Dave Lewis, who takes over the top job today, a month ahead of what had been planned.
Tesco, who has lost the bulk of their business to up-and-coming budget retailers such as Aldi and Lidl, also slashed its dividend by 75% to give Lewis greater flexibility to revive the world's No.3 retailer.
Can it catch up on lost ground? Who knows? Should they break themselves up in a bid to stay in the game?