|Bid||213.70 x 0|
|Ask||213.60 x 0|
|Day's range||212.60 - 216.30|
|52-week range||187.05 - 260.10|
|Beta (3Y monthly)||1.15|
|PE ratio (TTM)||15.63|
|Forward dividend & yield||0.06 (2.58%)|
|1y target est||N/A|
'We can’t overlook the fact that for too long, packaging on consumer goods has been excessive,' Tesco CEO Dave Lewis said.
I think these two FTSE 100 (INDEXFTSE:UKX) stocks offer appealing risk/reward ratios at the present time.
Asda, the British supermarket arm of U.S. retail giant Walmart, said uncertainty surrounding Brexit was affecting its customers as it eked out a small rise in second-quarter sales, helped by a later Easter this year. Prime Minister Boris Johnson has promised to take Britain out of the European Union by Oct. 31 with or without a deal, setting the scene for a showdown in parliament where lawmakers are opposed to a divorce without a transition agreement. "Our results for the quarter reflect the challenges faced by shoppers in this market as the uncertainty surrounding Brexit continues to loom," Walmart chief executive Doug McMillon said on Thursday.
London's FTSE 100 tumbled to a six-month low as China's warning to counter the latest U.S. tariffs fanned trade tensions, while the more domestically focused midcap index fared better in comparison, amid investors' hopes of averting a no-deal Brexit. The FTSE 100 index shed 1.1%, lagging its European peers, with losses led by oil majors and financial stocks.
UK shares bagged gains for the day, reversing earlier losses, after the United States said it would delay tariffs on some Chinese products, offering respite to investors who had been gripped with fears over the trade dispute. The FTSE 100, which had started off the session in the red amid Hong Kong protests and the U.S.-China trade worries, ended 0.3% higher. The midcap index rose 0.5%.
How long will Tesco plc's (LON: TSCO) share price continue to fall? Quite a while, Royston Wild says, so he reckons this FTSE 100 (INDEXFTSE: UKX) stock's a better buy today.
Britain will experience shortages of some fresh foods for weeks or even months if a disorderly no-deal Brexit leaves perishable produce rotting in lorries at ports, Britain's food and drink lobby warned on Wednesday. Retailers such as Tesco have warned that leaving the European Union on Oct. 31 without a transition deal would be problematic as so much fresh produce is imported and warehouses are stocked full ahead of Christmas.
(Bloomberg Opinion) -- Olaf Koch, chief executive of the German food wholesaler Metro AG, looks to have seen off a 5.8 billion euro ($6.5 billion) takeover attempt by the Czech billionaire Daniel Kretinsky. That’s both a blessing and a curse.On Monday, the bidding vehicle for Kretinsky and his business partner Patrik Tkac, said it had failed to convince two of the cash-and-carry group’s founding shareholders to back its 16 euro per share offer.With the holdouts (the Meridian Foundation and the Otto Beisheim Foundation) owning more than 20% of Metro’s shares, Kretinsky’s EP Global Commerce is unlikely to reach the 67.5% threshold for the transaction to succeed. The bidder said it won’t raise its price nor lower the minimum acceptance threshold. So the offer, due to expire on Wednesday, will probably lapse. Shares in the target company fell by about 6% to just above 14 euros on Tuesday morning.While Metro hasn’t responded to the Kretinsky vehicle’s statement, it no doubt welcomes the likely vanquishing of its predator. The grocer had argued that EP Global’s offer undervalued the group and that it had better prospects on its own.This is no unalloyed victory, though. Metro must now deliver on its promises. The company has struggled to improve its poor performance after a profit warning in April 2018, which was driven by problems in its Russia business, and a subsequent cut to its earnings outlook. While there was some improvement in its fiscal third quarter, helped by faster-growing markets such as supplying hotels and restaurants, it has a long way to go. There’s one bright spot: The company is in talks to dispose of its Real hypermarkets unit and is trying to sell a stake in its China operations. These deals could deliver proceeds of more than 1 billion euros.Even so, it’s hard to see why the group’s prospects will be much different from here on. Booker, the British wholesaler that is now part of Tesco Plc, was able to rejuvenate Metro’s British arm after it acquired the unit in 2012. But the German company hasn’t managed to do the same with its own businesses.If things don’t improve significantly in the next year, then Koch will be under severe pressure after seeing off the bid. What’s more, Kretinsky will still have a 17.5% stake in Metro and could agitate for change. That’s not a comfortable position for any chief executive.As we’ve noted before, the bidder is in a decent position whatever the outcome. If Koch does finally turn around Metro, Kretinsky would benefit as a big shareholder. If not, he can return with another bid. Should Metro continue to struggle, his hand may actually be strengthened.(This column was updated to clarify Metro's 2018 profit warning and earnings outlook cut.)To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
After a strong start to the year, Tesco plc (LON: TSCO) shares have drifted lower in recent months and now trade at an attractive valuation. Is this a buying opportunity?
(Bloomberg) -- Tesco Plc plans to cut 4,500 jobs as the supermarket operator slims down hundreds of stores and adds to the mounting toll on employment in U.K. shopping districts.Britain’s biggest retailer said it will streamline operations at its 153 medium-size Metro stores in city centers, while reducing opening hours at 134 Express convenience stores.The moves announced Monday come on top of previous cuts at Tesco’s larger supermarkets, including closing fresh-food counters. Those changes were expected to affect as many as 9,000 of the company’s more than 300,000 workers.The new round of cuts comes as price competition among U.K. supermarkets intensifies, with discounters Lidl and Aldi gaining market share, and the threat of a disorderly Brexit hitting the value of the pound and raising the cost of imported food.“Given investors’ focus on margins in a market characterized by its competitiveness, we view these measures as a positive to help streamline the group cost base,” Morgan Stanley analyst Maria-Laura Adurno said in a note.Tesco shares traded 1.1% lower in London on Monday afternoon.Retail CrisisWhile the U.K.’s labor market remains tight, the Tesco cuts will add to the job losses in the retail industry as consumers increasingly shop online. Employment in the sector fell 2.3% in the second quarter from a year earlier, costing 72,000 jobs, according to the British Retail Consortium.The company said it’s making the changes at Metro stores because many customers are using them as convenience stores for everyday shopping, rather than making larger weekly purchases. That necessitates more flexible working and quicker ways of filling shelves, Tesco said in a statement, with fewer products stored in back rooms and more groceries going straight to the shop floor.Stock routines will also be simplified at Express stores, where hours will be reduced slightly during less busy periods, the company said.Tesco Chief Executive Officer Dave Lewis has pared costs aggressively since taking over in 2014. In June, Tesco’s credit rating was raised to investment grade by Moody’s Investors Service, which cited profitability gains and debt reduction.(Updates with BRC jobs data in seventh paragraph)\--With assistance from Lisa Pham.To contact the reporter on this story: Eric Pfanner in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
British supermarket chain Tesco is cutting about 4,500 jobs from its Metro stores to improve the efficiency of a format that is increasingly used by customers daily rather than for a traditional weekly shop. Tesco, both the biggest retailer and largest private sector employer in Britain, is restructuring operations in response to changing consumer habits, driven by the rise of online shopping and increased competition from discounters Aldi and Lidl. The company said the changes in its 153 Metro stores - medium-sized shops found on Britain's shopping street and by railway stations - would allow it to shift stock more quickly to the shelves and cut the time it was held in the store room.
Tesco, Britain's biggest retailer, said it would cut around 4,500 jobs from its Metro stores in a new wave of redundancies designed to cut costs and reposition the group to compete in the highly challenging environment. Britain's biggest private sector employer said it would restructure the stores - medium-sized shops found on the high street and by railway stations - to shift stock more quickly to the shelves and cut the time it is held in the store room. Tesco said the Metro stores had originally been intended for customers making a weekly shop, but as consumer habits changed they now served those buying food daily, changing the logistics required.
Around 4,500 staff in 153 Tesco Metro stores are set to lose their jobs in the latest round of redundancies at the UK's biggest supermarket, Tesco has said.
Traditional retailers around the world, such as Carrefour, its French rival Casino and Marks & Spencer, are stepping up their online presence to deal with the increase in purchases done over the Internet. Carrefour, which is Europe's largest retailer, said group operating profits rose 2.6% from the same period last year to 618 million euros ($690 million). Carrefour had a 282 million euros improvement in cash-flow, while recurring operating profits at its competitive, key home French market rose by 6 million euros to 116 million.
Unilever, Tesco and Nestlé are among the best prepared to capitalise on the trend for plant-based meat substitutes, according to a report from an investor group managing $5 trillion in assets. The report by the Farm Animal Investment Risk and Return (FAIRR) coalition showed 25 major retailers and manufacturers were developing strategies for sustainable protein products, recognising the risk of a strategy reliant on animal protein. Unilever, Tesco and Nestle were awarded top rankings for their work in understanding the impact and reducing risks associated with intensive animal agriculture, such as the emission of greenhouse gas.
Supermarket sales in the UK fell by 0.5% in the three months to 14 July, in the the first overall decline in the supermarket sector since June 2016.