Tesco finally lets rip as sales keep falling
Tesco has this morning bitten the bullet and taken the plunge in a big push to turn around its fortunes in the face of declining […]
Tesco has this morning bitten the bullet and taken the plunge in a big push to turn around its fortunes in the face of declining […]
Tesco has this morning bitten the bullet and taken the plunge in a big push to turn around its fortunes in the face of declining market share and persistent sales slippage.
Like its rival Sainsbury, which reported Christmas sales yesterday, the UK’s largest supermarket chain in terms of annual sales claims already announced measures introduced during its calamitous 2014, are already turning the tide because whilst it still reported declining sales, the rate of their fall has slowed.
Tesco on Thursday said same-store sales, excluding petrol, fell 2.9% in the 19 weeks to January 3, better than most analysts’ predictions and a significant improvement on a decline of 5.4% in the second quarter.
Christmas-specific sales at the retailer—made up of the most recent six weeks—fell 0.3%.
The better-than-expected sales slowdown is being eclipsed somewhat this morning by a raft of measures announced by the supermarket to return revenue growth to the strength seen in years past and stabilise its balance sheet, which notably contains areas which appear to present risks of write downs and total debt that has become potentially crippling compared to its total market value.
Please check City Index Market News and Analysis often today, for a continuing stream of new articles and updates, plus check @CityIndex and the Twitter feeds of my colleagues and myself for more.