Tesco: woes continue

1 September 2014

tesco bag It's been a rum few days for Tesco.

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?

TOPICS:   High Street News   Economy

5 comments

  • sarckymark
    All those years of bragging how much money they were making - it really never occured to them that other firms might get in on the game for a slice of that pie or that customers might get sick of hearing how much they were being milked for in return for some of the worst 'fresh food' around.
  • Quietus
    I can't see what's so surprising. They creep their prices up over a number of years, allowing other supermarkets such as Aldi and Lidl to take over by charging what they used to charge, and then act all surprised and disappointed. Seems stupid to me.
  • youngatwork
    Constant cycle of Buy 2 get 3rd free, 3 for 2, Buy one get one free, 2 for £2. Nobody trusts Tesco's fake deals anymore
  • Mark H.
    Where have Tesco gone wrong? Here are a few of my personal suggestions: 1. Their stores look awful. Do they really think that people still read those enormous yellow and red signs they have everywhere? I'm sure people don't and they make the stores look cheap. 2. Tesco Direct is awful. To be fair I've not used it much but when I have they managed to get everything wrong (using Yodal was a big part of the problem). 3. Their electrical/media department is and always has been a half hearted effort. The staff are rude and unknowledgeable and the stuff is overpriced without enough range. Stock is also always an issue - if you do find something you want at the right price then it's probably not in stock. They may as well not bother and use the space for more food or a bigger cafe. 4. Their sandwich range is pathetic. It's like their directors have never been to Boots/M&S etc and seen how sandwiches should be done. It may seem unimportant but if people venture into other stores on a lunch time then Tesco miss the passing trade. I could go on but I won't.
  • No c.
    Tesco is just to expensive nowadays. Once you have a Lidl nearby, you will never set foot on Tesco again.

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