IN A WORLD of fierce supermarket price wars, and in the words of a well-known supermarket chain, every little helps. And every percentage point change in sales growth or underperformance can send alarm bells through the industry.
Tesco’s own house broker signalling a two per cent decline in UK sales has surely raised some fears among shareholders that Tesco is failing to buck the downward trend of flagging sales.
Even in the context of a tough Christmas, it seems that rivals Sainsbury, Morrisons and Asda have collectively been just that little bit smarter and more proactive than Tesco in terms of marketing promotions.
Yet despite the slight shine off Tesco’s preeminent position, the company remains the leader by market share and its UK performance represents only a small part of a much bigger picture.
Overseas growth is strong and it would be foolish to write off this Goliath of the sector just yet.
Best to sit tight for a couple of days and buy on the inevitable weakness.