FCA to investigate Tesco after £250m accounting error

[CheeseSlice]

For me Tesco is on it's way down, expanded too fast and people are moving to local or cheaper stores.

From what I can remember Tesco was the first casualty of the big 4 supermarkets due to the 'squeezed middle' caused by the financial crisis, austerity measures and the prolonged recovery. And like you say they expanded too fast, particularly with unsuccessful overseas ventures whilst neglecting the UK business that was taken for granted. Its all come down to market share, with only so many shoppers and they all need to buy food somewhere. Only Asda is growing market share at the moment, whilst Sainsburys and Morrisons have been also been losing market share to Aldi and Lidl.

My view is that Tesco can return, but it will require all of the slack in the employment market to finally be used up, followed by rising wages well above inflation before they will start to see middle-class shoppers deserting Aldi and Lidl.

I'm not going to sell my Tesco shares as I've left it too long to get out. I just wish I saw the trend earlier.

[Old Greg]

From what I can remember Tesco was the first casualty of the big 4 supermarkets due to the 'squeezed middle' caused by the financial crisis, austerity measures and the prolonged recovery. And like you say they expanded too fast, particularly with unsuccessful overseas ventures whilst neglecting the UK business that was taken for granted. Its all come down to market share, with only so many shoppers and they all need to buy food somewhere. Only Asda is growing market share at the moment, whilst Sainsburys and Morrisons have been also been losing market share to Aldi and Lidl.

My view is that Tesco can return, but it will require all of the slack in the employment market to finally be used up, followed by rising wages well above inflation before they will start to see middle-class shoppers deserting Aldi and Lidl.

I'm not going to sell my Tesco shares as I've left it too long to get out. I just wish I saw the trend earlier.

I don't 'do' shares so I'm interested in those that 'do'.

If you had no shares in Tesco but the equivalent cash to the current value of the Tesco shares you in reality hold, would you use that cash to buy Tesco shares?

[OwlHoot]

Tesco will be back, they are too sharp not to be ...

Their model, of huge out-of-town superstores, doesn't seem to translate well to the emerging trend of web-ordered home deliveries

So maybe the sharp thing for them to do is convert some of those stores to warehouses.

[MarillionFan]

So still being sold / shorted at the moment. Personally I would expect this to go on all week until a short rally on late Thursday or Friday. That being said, I would imagine the Sunday papers will crucify them & there is probably a lot more bad news to come out, so see this drifting down next week as well.

How to call the bottom?

[DodgyAgent]

Their model, of huge out-of-town superstores, doesn't seem to translate well to the emerging trend of web-ordered home deliveries

So maybe the sharp thing for them to do is convert some of those stores to whorehouses.

FTFY

[CheeseSlice]

I don't 'do' shares so I'm interested in those that 'do'.

If you had no shares in Tesco but the equivalent cash to the current value of the Tesco shares you in reality hold, would you use that cash to buy Tesco shares?

Now, I'd probably buy them when BOE interest rates actually go up, because that means wages are 'in theory' about to go up.

[Scruff]

I don't 'do' shares so I'm interested in those that 'do'.

If you had no shares in Tesco but the equivalent cash to the current value of the Tesco shares you in reality hold, would you use that cash to buy Tesco shares?

I have them and they are now shyte.
If I had the confidence I would buy more, but instead get a better return on property investment.

[d000hg]

Their model, of huge out-of-town superstores, doesn't seem to translate well to the emerging trend of web-ordered home deliveries

So maybe the sharp thing for them to do is convert some of those stores to warehouses.

Buy Amazon then, before they jump fully into online groceries?

[eek]

Their model, of huge out-of-town superstores, doesn't seem to translate well to the emerging trend of web-ordered home deliveries

So maybe the sharp thing for them to do is convert some of those stores to warehouses.

So the ocado approach of keeping the high end market for themselves providing the infrastructure to Morrison's for the value end looks like a long term winner..

[SueEllen]

Their model, of huge out-of-town superstores, doesn't seem to translate well to the emerging trend of web-ordered home deliveries

So maybe the sharp thing for them to do is convert some of those stores to warehouses.

The sharper thing for them to do is work out what stores aren't profitable and in places with reasonable house prices. Knock the stores down, build housing to rent out and a smaller local.

(They are actually planning to build housing on some of the land they have got banked for superstores.)