TSCO.L - Tesco PLC

UPDATE 2-Sainsbury's outperforms major rivals in weak UK market - Kantar

UPDATE 2-UK's Asda says Brexit uncertainty affecting customers

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.

UPDATE 2-FTSE 100 plunges to 6-month low on China's trade threat

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.

UPDATE 2-UK shares rebound as U.S. tariff reprieve eases trade worries

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%.

UPDATE 3-Britain would face food shortages in no-deal Brexit, industry body says

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.

Tesco to Cut 4,500 Jobs as Grocer Streamlines Metro Stores

(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 epfanner1@bloomberg.netTo contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

UPDATE 1-Tesco to cut 4,500 jobs in Metro restructuring

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.

UPDATE 1-Retailer Carrefour says strategic overhaul on track as H1 profits rise

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, Nestle ranked top on meat alternatives - report

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.

UPDATE 2-Britain's grocery sales fall for first time since June 2016 -Kantar

Britain's supermarkets sales fall on tough year-on-year comparison - Kantar