Tesco Share Discussion Threads

[careful] 14/4/2021 10:44

john wise is suddenly obsessed with China problems.

Who gives a damn.
More than 7bn World population, there is always someone being beastly to someone else.

Nothing to do with Tesco.

[careful] 14/4/2021 10:00

just bought in here.
a juicy 4% dividend and a £53.4bn turnover.

This Covid year was always going to be messy and expensive.
The integration of Booker also, management have lots to do.

Huge potential savings going forward.

[philanderer] 14/4/2021 09:44

Well flagged. I'll continue to hold.

[nathdani] 14/4/2021 09:10

Cheers jimbob

[johnwise] 14/4/2021 08:16

China Holocaust Update:


Exiled Gynecologist Reveals Details of China’s Forced Sterilization of Uyghur Women

ISTANBUL, Turkey — A woman doctor from the ethnic Uyghur minority, now exiled in Turkey, painted a vivid picture of the Chinese crackdown on human rights in Xinjiang in an interview with The Sankei Shimbun.

The woman revealed that “on some days there were about 80 surgeries to carry out forced sterilizations,” testifying to her own role in this large-scale program carried out in the autonomous region.

[johnwise] 14/4/2021 08:12

Communist China Germwarefare Reduce Tesco Profits:

Tesco profits dive 20% despite surging grocery sales during pandemic

Tesco has revealed that its profits tumbled by around a fifth over the past year after coronavirus costs of almost £900 million offset surging sales.

[colonelgrim] 14/4/2021 07:55

If ever there was a 'SELL ON GOOD NEWS' it is this one!

[paulisi] 14/4/2021 07:14

Results are pretty decent.Outlook statement show expected better margins for this financial year and a return for profit for Tesco Bank.Not too much to complain about..

[peteret] 14/4/2021 00:33

I've held though it was a roller coaster ride near market close.Good luck all holders.

[jimbob] 13/4/2021 22:50

@nathdani


@Questor: Tesco’s loss-making online sales left it exposed – but its fortunes have changed
Questor share tip: a shift in shopping habits has allowed the chain to improve margins on internet orders and fend off competition

By
Richard Evans
11 April 2021 • 5:00am

Supermarkets have hardly been stock market favourites in recent years, partly because of what looked like the inexorable rise of Aldi and Lidl. But investors may have had something else in mind, too: the sheer difficulty of making online shopping profitable.

While Tesco may have made a profit margin of 5pc (before interest and tax) from sales made in its stores, before the pandemic it was making a loss of 4pc of the value of every online order, according to estimates from Exane, the investment firm.

This is not a welcome state of affairs if your online business is steadily growing at the expense of your in-store one. You might imagine that the pandemic has therefore worsened the problem for Tesco (and others) because 10 years’ growth in online sales, let’s say, has been compressed into one. Indeed, the proportion of Tesco’s sales in Britain made online has grown from about 9pc to 16pc. But there is more to the story.

During the pandemic the value of individual online orders has also increased. This helps dilute the effect of the high fixed costs of delivery and “picking”; of the orders in the shops. In addition, drivers have been able to deliver more orders on each round as the average distance between customers has fallen because more have signed up.

Last year Tesco’s fleet delivered 21pc more orders per van than in 2019, according to Majedie, an asset manager that holds shares in the company. At the same time the proportion of online orders that are click and collect has increased from around 13pc of the total to roughly 21pc. As this avoids delivery costs, profitability is better.

A spring in their step

Bar chart with 2 data series.
Supermarket till rolls, 12 weeks to 21 Mar 2021 vs 2020
View as data table, A spring in their step
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying £bn. Range: 0 to 9.
End of interactive chart.
“While Tesco does not disclose its online profitability specifically, our engagement with the company has confirmed it is now enjoying a distinctly better economic model than before Covid-19, such that it is no longer seeing significant [profit margin] dilution from online sales relative to in-store,” Majedie said.

That is quite a remarkable shift compared with the margin estimates mentioned above. The asset manager said the market was underestimating the impact of this change.

But there is more to the Tesco story than this, partly because the chain has had a good pandemic in other ways. Customers have been reassured by its coronavirus safety measures, such as “traffic lights” to control entry, and have come back to Tesco’s superstores from the German discounters because their size and range of products mean that shoppers are less likely to bunch in particular places inside the stores.

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Read Questor’s rules of investment before you follow our tips
A further side effect of the virus has been less of what supermarkets call “promiscuous” shopping: going to more than one in search of the best offers from each – not a good idea if you want to minimise social contact.

Instead, customers increasingly want “everyday low prices” rather than endlessly changing special offers – and once customers perceive, say, Tesco as offering that value they feel more loyalty to the brand. Tesco’s Clubcard helps to cement this feeling.

Not only has the threat from Aldi and Lidl diminished but Asda is likely to be less aggressive a competitor on price now that it is under new ownership. When it was part of the giant Walmart group there was plenty of money to fund loss-leaders or price cuts but its new ownership – the Issa brothers backed by private equity – involves a lot of debt and the firm will need to keep a close eye on profitability.


If you put all these reasons for shoppers to choose Tesco together the result in terms of profits should be significant. This is because supermarkets have what is called “high operational gearing”, which means fixed costs are high and therefore relatively small increases in turnover can translate into big rises in profits once those fixed costs are covered.

Tesco’s transformation following a series of crises about seven years ago was largely thanks to Dave Lewis, who stepped down as chief executive in October last year. His replacement, Ken Murphy, formerly of Walgreens Boots Alliance, and the new finance director who starts next month are expected to adopt an evolutionary approach that builds on Mr Lewis’s work rather than one of drastic change.

James de Uphaugh of Majedie said: “Tesco offers a free cash flow yield of 9pc and a dividend yield of about 4pc. It is a market leader that is gently gaining market share and has a well liked brand.” We said buy in July last year and remain positive.

Questor says: hold

Ticker: TSCO

Share price at close: 234.4p

[piedpiper2] 13/4/2021 17:09

I`d say sell

[nathdani] 13/4/2021 15:38

do i sell or risk results day ?

[peteret] 13/4/2021 14:53

And now the situation is reversed.

[peteret] 13/4/2021 09:27

This is crazy my rr and iag shares are rising with few planes flying yet tesco with shops full of people are falling.

[nathdani] 12/4/2021 09:21

Just a shame you have to pay to see their tip.

[philanderer] 12/4/2021 00:08

Questor: Tesco’s loss-making online sales left it exposed – but its fortunes have changed

Questor share tip: a shift in shopping habits has allowed the chain to improve margins on internet orders and fend off competition

[johnwise] 09/4/2021 08:04

Cheapest and priciest supermarkets to buy a basket of 20 items or trolley-load of 85 goods revealed: Waitrose is 32% more expensive than Lidl

[johnwise] 09/4/2021 04:55

When Morrisons want to change anything they always claim to have listened to customers. It is a load of twaddle.

I now avoid shopping at Woke Morrisons wherever possible..


Morrisons becomes first UK grocer to remove plastic bags from stores

[yf23_1] 08/4/2021 19:53

reverse H&S ?

[eurofox] 08/4/2021 16:38

on the move at last

[mark0419] 08/4/2021 11:12

Should be a good dividend here soon only winners were supermarkets and Amazon during the lockdown. Load up in your pension pot.

[johnwise] 08/4/2021 09:26

Britain will pass threshold for Covid herd immunity on MONDAY when more than 74 per cent of people will have protection against the virus, scientists say

[geckotheglorious] 08/4/2021 09:14

Cheers for link, will take a butchers!

:)

I'm partial to such,but boycotting Scottish products generally as I'm sick of the anti English SNP..

[johnwise] 08/4/2021 09:07

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