Tesco Share Discussion Threads

[tim 3] 03/10/2018 09:26

chart wise would not be surprised if it hit £2 again.

[philanderer] 03/10/2018 09:22

'Tesco half-year profits up as UK sales climb'


Britain's biggest supermarket saw further sales growth in the UK but shares fell as profits fell short of expectations.

[philanderer] 03/10/2018 09:04

Market report..

At the other end of the large cap index, Tesco was the worst performer, down 4.7% despite the supermarket chain saying it is "firmly" on track to meet its medium-term ambitions after reporting growth in the first half of its financial year.

For the six months to August 25, the FTSE 100 grocer posted a rise in pretax profit of 2% year-on-year to GBP564 million from GBP553 million. Revenue, including VAT and fuel, came in 12% higher than the prior year at GBP31.73 billion versus GBP28.33 billion.

By geography, the UK & Ireland - Tesco's biggest market - saw like-for-like sales up 3.8% year-on-year to GBP25.70 billion, Central Europe sales dipped 1.5% to GBP3.11 billion due to changed to Sunday opening regulations in Poland and Asia sales declined 7% to GBP2.36 billion.

"The proposed Sainsbury/Asda merger would add another level of competition within the sector, the discounters continue to pile on the pressure and Amazon also casts its own long shadow. Sales in Central Europe and Asia remain laboured, although improving in the latter, whilst the UK consumer will likely look to carry on being driven by price as the economic implications of Brexit emerge," said Interactive Investor's Richard Hunter.

Tesco hiked its interim dividend by 67% to 1.67 pence per share from 1.0p a year ago.

"Although the dividend has been increased, itself a clear sign of management optimism, the yield of around 2% is hardly an attraction given the current interest rate environment," Hunter added.

Alliance News

[tim 3] 03/10/2018 09:04

"Tesco shares fall after operating profits disappoint"

[hazl] 03/10/2018 09:01

Yes philanderer I'm getting it all wrong today.
Still it's been a good run and we've got the dividend to look forward to.

[filmster] 03/10/2018 08:58

Share seems to be getting shorted quite a bit atm. Even if results were amazing i think they would of tried to push it down still

[philanderer] 03/10/2018 08:55

Morning hazl , I'm seeing -6.5% !

[hazl] 03/10/2018 08:41

A certain number sell out on results but actually



price seems to be perking up.

[philanderer] 03/10/2018 08:37

Didn't see that coming.

[filmster] 03/10/2018 08:34

Im not nathdani, mine matures next feb/March lol

[nathdani] 03/10/2018 08:28

happy to see it down at mo SAYE price out soon !!!!!!!!

[hazl] 03/10/2018 08:10

fair enough

[wynmck] 03/10/2018 08:05

info only....as a large holder I'd be looking to ramp UP

[hazl] 03/10/2018 07:56

Not that you want to influence....

[wynmck] 03/10/2018 07:54

cnbc see shares dropping 2% on open

[hazl] 03/10/2018 07:45

Yes phew I read it wrong initially!

[tenapen] 03/10/2018 07:27

Good results ..... IMO

[tenapen] 02/10/2018 20:24

Good thinking, Oiht :-)




3 October 2018 Interim results announcement 2018/19

[oiht] 02/10/2018 15:13

Loganair: "Yes, they don't have fancy stores, no costly loyalty clubs and no cash-back offers that appear to be a common currency among their competitors."

Anyone remember Sainsburys' price match? You'd get to the till and after paying for the shopping they'd give you a voucher stating how much they had overcharged you compared to their competitors. So what you had to do is return to the store and do more shopping, present the price-match voucher, and they'd knock the money off. Then they'd give you another voucher for the amount they'd overcharged you on the second trip! I used to think "If you've overcharged me why not just give me the effin' money back now?!" But perhaps it's just me :-)

[loganair] 02/10/2018 14:13

With over 77% of its products sourced from the UK Aldi is not afraid of Brexit given its experience in trading with federal markets all over the world.


You know you are doing something right when one of your main competitors tries to copy your business model and muscle in on your patch. Oscar Wilde may have been right when he famously said that imitation is the sincerest form of flattery, but in the case of Tesco trying to emulate the German discounters Aldi and Lidl with its own low-cost retail offering, it's tempting to say that imitation may be the clearest sign of desperation.

With Tesco now looking to park its considerable tank on the perfectly-manicured Germanic lawns of its rivals, it's quite possible that in the boardroom of Aldi Sud in Mulheim in Germany, senior management are currently physically quaking in their boots as they contemplate the prospect of retail annihilation.

It's also possible that in the Neckarsulm, the picturesque town in northern Baden-Wurttemberg where Lidl has its HQ, board members may even have thought about hara kiri as they weigh up a possible negative outcome to the imminent battle that lies ahead.

Somehow, I doubt it.

To their credit, both Lidl and Aldi have proved to be worthy pioneers of the discount retail model and their no-frills approach and quest to drive prices down has won them admiration in all the markets in which they operate.

Yes, they don't have fancy stores, no costly loyalty clubs and no cash-back offers that appear to be a common currency among their competitors. And while the overall customer experience may not be as slick as some of their competitors, at a time when many purchasing decisions are rooted in value for money and quality, their prices do all the talking.

In other words, they created and own the discount end of the market and after years of tweaking and getting better at it, they are not going to hand over their dominance any time soon.

Like Aldi and Lidl, Tesco is clearly doing something right. With a substantial footprint of large and small stores the length and breadth of the UK and Ireland, it also owns a treasure trove of customer data which makes it the envy of other retailers. It has already proved that its own in-store discounting strategies work and often match those of many of its rivals. And, following its €4.14bn acquisition of wholesaler Booker in 2017, it has also built up unrivalled scale and leverage with suppliers.

Is the latest move into the discount end of the market an admission of failure? Has Tesco thrown in the towel in the discount wars and opted to open it up on a different front with a smaller and untested retail offering?

Arguably, the biggest grenade Tesco could have chucked into the discount market is Tesco itself, something which appears to have been lost in all the talk about regaining market share.

Analysts also say that playing them at their own game is doomed to fail. Instead, it should focus on developing the turf it owns, they say.

Unfortunately the business graveyard is full of tombstones remembering those companies that made the ill-fated decision to copy others only to fail miserably. In the retail world, the biggest of them all - Walmart - tried to take the fight to the Germans on their own home turf in 1997 only to be trounced at every turn, forcing it to withdraw with a bloodied nose in 2006.

Or what about British Airway's hair-brained attempt to take on Ryanair and EasyJet with it's low-cost alternative Go Fly? That went well, didn't it?

Maybe Tesco has learned something from these case-studies, or maybe not. But when it comes to launching new businesses in uncharted waters, just because you can doesn't always mean you should.

[loganair] 02/10/2018 14:10

Aldi is after Jack’s:


The German Aldi determined to keep its brand as cheapest grocer. Increase in profits to 29% is proof.

Generating more than £10 bn in sales, Aldi is not afraid to cut prices to beat Tesco’s new discount chain Jack’s in the race for their Uk customers’ purses.

Its 70 store expansion allowed Aldi to clock up 30% more in sales in 2017. Now, it enjoys 1 million additional customers.

Britain’s fifth biggest supermarket has around 775 stores in the UK and Ireland, now owning 7.6 % of the UK market.

Previsions for Aldi:

In the next two years, the German grocer is planning on opening 130 stores in the UK. By 2022 , it would count 1000 grocery centers and by 2025, around 1200.

The Grocer’s analysis pts Aldi 22% cheaper than the « big four » namely Tesco, Sainsbury’s, asda and Morrisons which have all cut prices and improved their cheapest own label ranges to compete.

Giles Hurley, the chief executive of Aldi UK and Ireland is confident in saying that it is impossible for other complex supermarkets to replicate their model.

In addition to this, the company’s online sales rose by 70% in 2017. Despite the fact that only homewares, alcohol and clothing currently available online.

[vaneric1] 02/10/2018 10:12

As private family owned businesses I wonder how much debt they are carrying.