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Tesco expected to post significant write-offs

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20/04/2015
Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

On Wednesday, Tesco publishes its annual results for the year ending February. Last week, Tesco confirmed it could post a writedown far in excess of previously touted figures of up to £1bn; analysts are now forecasting that pre-tax losses could be as high as £5bn.

“The announcement will be a horror show,” said Clive Black of Shore Capital, reported in the Financial Times. “Within a generation Tesco has gone from a reasonably robust British grocer to the world’s third largest supermarket group. Now it must reorder its balance sheet and focus on reducing its costs.”

Borja Olcese of JP Morgan Cazenove believes Tesco may be forced to raise money to soothe the pain. “We find it difficult to believe that Tesco can continue to drive volumes, improve margins and pay down debt simultaneously without raising capital,” he remarked to The Times.

“The most obvious solutions Tesco could opt for in order to strengthen its balance sheet are…either in the form of asset disposals or a potential share placing.”

Despite a troubled two years characterised by scandal and losses, Tesco retains a 29 per cent share of the UK grocery market at present.

 

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  • hassan mirza

    TESCO need to see there management style where they have mentality as they are favouring the customer . It is common sense if customer is right or customer is king then how come cashier is sitting and customer is standing and Help mean help if you ask any sales assistant any item where or when I can find it there first response is I do not know I work this section and that section know lack of training and the british management style which mean care for the owner not customer. The Walmart American chain store never file any loss since they came in business because for them customer is king.

  • JeffB

    At last people are waking up to Tesco.and voting with their feet. such a non customer caring bunch. they deserve all they get.

    • Mike Capelin

      and they treat their staff even worse.

  • WILLIAM SHAW

    I find the ” beep ” sound at the automatic checkouts is so loud that it hurts my ears and could contribute to hearing loss. When I asked the assistant if the volume could be turned down, after some adjustment the ” beep ” was just as loud as before. I was going to take some ear protector muffs next time I went to the supermarket, but thought better of it. I did not want to embarrass the staff. All the other shops have machines that are much quieter.

    • Travelman868

      Why are you pandering to the supermarkets, using the Auto checkouts you are putting people out of work.
      It is already difficult to find someone to answer questions.

    • Ronnie Fox

      what a loud of shite hearing loss what a joke

  • Jim Clapperton

    The problem is directly the responsibility of the latest bunch of incompetent directors. They took their positions after people who had worked to build the business successfully, then they milked it for all they could get. I hope they are being forced to repay the excess they drew. I am lucky enough to remember Jack Cohen and the rest of the board at that time. Ian McClaren took the helm and Tesco was still growing strong. But in the last ten years it has been managed by people who far exceeded their level of incompetence. Come on, get rid of the idiots, reclaim any bonuses and excess salaries and put people in who can put the business where it should be. There must be someone out there who can pick it up and move forward. Even I could do better than the present lot !!!

  • 0ddjob

    Tesco, Asda and the other members of the cabal, are now all suffering a severe customer haemorrhage as a result of the inroads made into the market by Aldi and Lidl. We were customers of Asda for many years, but last year we transferred our allegiance to Aldi and discovered that we could make big savings. These days we only visit Asda once a week to purchase the odd item not stocked by Aldi.

    I think it is now too late for the big four to recover their previous positions in the league table. Having experienced substantially lower prices, people are not going to revert to paying more for their weekly shop any time soon.

  • Deborah Kirk

    I have been shopping at Aldi and avoiding Tesco for about ten years, however, I have started to change my shopping habits and I have gone back to shopping at Tesco. They have brought down their prices dramatically and stock a better range of items than before. However, with Tesco Direct online shopping they have become too big and complex. I found a pair of spectacles I liked on the Tesco Optician website and went to the store to try them on. Upon making enquiries in the store and via e-mail I was told that the shops do not stock the same frames as the online Optician and you have to order prescription glasses online, try them on for the first time when they arrive, then return them for a full refund if you don’t like them. I believe ludicrous policies like this are causing Tesco to fail.

  • Travelman868

    Now let me check. Do I have paper, pen, calculator and computer. Is my brain rested and ready to compare the same items but different sizes.
    OK I’m ready to shop at one of the big 4 supermarkets.
    Then they wonder why they lose customers. AND
    When are they going to stop the nonsense of Buy 2 get 50% discount or calling exactly the same item a premium at twice the price.

  • ashgrove

    My gripe about Tesco at the moment (it is my supermarket because it is my
    nearest supermarket and on the whole think it very good ) but just lately
    am finding it unreliable for stock of the routine items. I hate this, it wastes time
    and petrol money. Also their own brand tea seems to be loosing strength,
    are you putting less in the tea-bags Tesco?

  • Graham Ashurst

    This article is almost 2 years old ………………… What’s going on ?

  • Mick Tighe

    I went tesxit last week. Their charity is diabetes uk. Fanta full sugar £1 next to it Fanta Zero £1.95 NEVER GOING IN THERE AGAIN, STICK TO HORSEMEAT AT LEAST THE PRICE WAS RIGHT.

  • Wayne Elliott

    This is very old news that Tesco traded out of a couple of years back, very recently they purchased Booker cash and carry also netting Budgens, so indeed what is going on here? why is such a old story being recirculated? has the editor been involved in a pissing contest with Tesco??

  • Louise Hedges

    Still prefer Tesco shopping. Purchased packet of digestives, twice, at ALDI and both times at least 75% of the biscuits were pulverised, you cannot feel them through the packet before you buy. Fruit and Veg are a waste of time unless you are going to use them all within 2 days, they go off so quickly even after being stored at home the same as Tescos. TESCO is by far the best value. ALDI can be FALSE ECONOMY.

  • Daisy

    This is old news? Tesco are doing well now.

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