John Ibbotson / 12th January 2017
In the week of Christmas figure releases it’s now Tesco’s turn. The once giant of UK retail has taken some huge hits over the last few years but these figures show its rising from the ashes with increased market share. Here are my thought’s on their festive trading numbers:
“Tesco’s revival continues apace, with a strong Christmas trading period and third quarter.
“More ominously for its competitors, Tesco has managed to increase its market share in a period of cut-throat competition.
“With Morrisons applying the afterburners and Sainsbury’s also strengthening after its Argos acquisition, this is no mean feat.
“Lower prices, especially on fresh food and a massive investment in the Christmas range and premium Tesco Finest brand have brought the customers flocking back.
“There’s a tough year or two ahead for everyone in the sector, but there’s now no doubt that Tesco has started to hits its stride.
“To get Tesco to its new position of strength, Dave Lewis didn’t reinvent the wheel but simply went back to basics.
“Tesco has prices to regain competitiveness in the core UK business, rebuilt customer trust and strengthened its balance sheet by selling off non-core operations and stores. The latest round of restructuring is another example of Dave Lewis future-proofing the business.
“Tesco still has some housekeeping to do, not least its large pension deficit, but its size will increasingly prove decisive, helping it to keep prices down for longer than its rivals and maintain its margins.
“Tesco is back and it means business.”