Tesco Share Discussion Threads

[loganair] 03/10/2018 12:23

Locally we have all the major supermarkets except Morrison's and each of the supermarkets definitely have their own core customer base. M&S retired well off, Sainbury's middle class, Tesco lower class, Asda Eastern Block and Indian sub-continent, Co-Op for those odd bits a pieces one needs as one has run out off and als has the local post office, Waitrose upper middle class.

T56 = Just run your company well and the share holders will be happy. M&S was run well and knew their core customers and were the first retailer to make £1bln profit in 1990 ($5bln in to days money). Since then they have forgotten where their expertise is and now barely make £500mln profit.

Tesco needs to do what Tesco does well, Sainsbury's needs to do what Sainsbury's does well, M&S needs to do what M&S do well otherwise they will continue to lose market share and have vastly reduced profits.

[tradejunkie2] 03/10/2018 12:13

Everyone having a nice day?

I'm off to Tesco to sample the toilets for a dump.

[typo56] 03/10/2018 12:13

That's what I meant. A public company like Tesco has shareholders' expectations to deal with. A private company like Aldi doesn't.

[vaneric1] 03/10/2018 12:10

Locally here the fight is between Aldi and Lidl, Aldi got permission for a new store, the Co-op challenged that permission in the High Court and got it withdrawn,

A couple of years on Lidl got permission and Aldi tried to muscle in on the town by applying for permission on another nearby site, Lidl told the council "If you let them in we'll withdraw."

The town already has a large Co-op and a Tesco Extra next door to which is an empty store vacated last year when the Nisa/Tuffins chain went bust.

These stores have all been tried and failed by a variety of owners.

hxxp://www.theforester.co.uk/article.cfm?id=102833&searchyear=2017

[loganair] 03/10/2018 12:07

Pandering to shareholders expectations is a good way to fail.

Running a company well with an imaginative and original thinking management team and knowing your customers = higher profits = higher dividends for its share holders and is where M&S has been failing since the early 1990's and will continue to fail and is why the likes of Tesco and Sainsbury's are struggling so much.

[typo56] 03/10/2018 12:01

It's also about appropriate store sizing.

It's also about differences of managing private and public companies and pandering to shareholders' expectations.

[loganair] 03/10/2018 11:59

Sadly Tesco are not copying Aldi/Lidl with how they run Jack's as their management costs will still be a lot higher then those of Aldi/Lidl.

Copying, Tesco's will lose, they need to be either better of different to beat the likes of Aldi/Lidl.

[hardwiring] 03/10/2018 11:58

Personally, I don't see the point of Jack's. Surely the existing business needs transforming.

[fangorn2] 03/10/2018 11:54

Isn't that what "Jacks" is going to be all about?

Copying Aldi/Lidl model?

[hardwiring] 03/10/2018 11:49

So recruit a top executive from Aldi/Lidl and make them a mega offer to transform the business.I know, it won't happen but why not?

[loganair] 03/10/2018 11:45

I doubt very much if the management of Tesco, Sainsbury's or Asda are capable of taking on the likes of Asda/Lidl as it is not about the business model of discounting as even the great Walmart are unable to take Ald/Lidl on, it is more about running the whole business as a leaner and fitter companies.

I've noticed how the productivity of the average Tesco, Sainsbury's or Asda employee is far lower then their counter parts in Aldi or Lidl. Even at management level their costs are far too high and need to be reduced by at least 25%.

[hardwiring] 03/10/2018 11:31

Presumably Tesco management are quite capable of copying the Aldi/Lidl business model if they want to.It's not rocket science surely?

[loganair] 03/10/2018 11:20

The problem I see with the so called big 4 supermarkets is they're on the whole still running their businesses as though they're still in the 1970's or 80's and sadly haven't changed much since then.

They're like dinosaurs, being over taken by the small mammals who were better suited to the conditions of the time.

Within less then two years Aldi/Lidl combined market share will over take both Sainsbury's and Asda, that's if they stay as independent companies and within around 3 years Aldi will over take Morrison to become the 4th largest supermarket.

[debsdowner] 03/10/2018 11:14

The results speak for themselves 2.5% growth inadequate when ALDI sales are racing away at double digits and profits up 25%.

TESCO are way behind the trend they will have to run fast and still fall backwards.

[skinny] 03/10/2018 10:47

First time back in these for a couple of years @216.72p

[loganair] 03/10/2018 10:24

As the old saying goes "Buy on the Rumour - Sell on the News"

[vaneric1] 03/10/2018 10:15

I don't think it's a reaction supermarky it's the big boy's trading computers running riot, human intervention later will bring it under control and I think it will be back up a lot by Friday close.

[supermarky] 03/10/2018 09:57

Crazy reaction to good results in a company with traction and heading in the right direction. Markets are crazy.

[bor491] 03/10/2018 09:56

'Still vaguely obscene that a Supermarket makes half a billion profit'

Wtf - do you think Tesco runs a charity!!? They are a business and need to make a profit. They just make half a billion because they are big but their margins aren't much. A 3.5% margin profit on products is very little.

[ladeside] 03/10/2018 09:56

Just need the share price to stay depressed until the 18th October so the new SAYE option price is decent.........

[chinese investor] 03/10/2018 09:50

Still Do !

[ignoble] 03/10/2018 09:37

Still vaguely obscene that a Supermarket makes half a billion profit
for six months trading out of our need to eat.

Way of the world , I suppose

Hopefully the consumer will see some of the profit returned via lower pricing.
What else can they do with half a billion. They will not want to open more stores !
IMHO
It is the consumer spending that allows supermarkets to make any sort of profit.

Can we have some back please ? LOL

[demo trader] 03/10/2018 09:27

Tesco's margins are rising and the 3.5% to 4% range it set as a target by 2020 now looks within touching distance, at least at its lower end, although the market was "expecting more improvement on this front," says Hargreaves Lansdown. That disappointment has fed through into the share price, which had been on a strong run of late, so a correction "reflects a bit of a reality check," the analyst says. "Things are getting better, just not quite as quick as stretched expectations would suggest," Hargreaves Lansdown says.


217.7p now, -14p