Dave Lewis’s shopping list: Blueprint for a Tesco turnaround plan October 23, 2014 Another update, another set of gloomy results from Tesco. The pattern is now well established, and yesterday’s weak trading numbers didn’t come as a great surprise. But one thing that did surprise was the apparent lack of a forward strategy. What is new chief executive Dave Lewis going to focus on? The issue of price [...]
Tesco’s credit ratings downgraded by two agencies October 23, 2014 Credit agencies Fitch and Moody's have downgraded Tesco's rating – with the latter saying it could be dropped further to junk status depending on the outcome of the ongoing investigation into its accounting practices. Moody's has dropped the rating on Tesco from Baa2 to Baa3, while Fitch has dropped it from BBB to BBB-. [...]
What businesses will Tesco sell after ruling out a rights issue to raise cash? October 23, 2014 Tesco may be in dire straits, but a rights issue was ruled out by chief executive Dave Lewis this afternoon. Rather, the team will look “to extract value” from the business, most likely by selling off some of its non-core business assets. The supermarket sells much more than just groceries after embarking upon a rapid [...]
Tesco boss Dave Lewis in video interview says “We’ve got to be a little bit disappointed” October 23, 2014 Tesco boss Dave Lewis has taken to YouTube to talk about the supermarket’s troubles after posting a 91.9 per cent drop in profits and a £263m profit understatement. “We’ve got to be a little bit disappointed," said Lewis, erring towards an understatement rather than overstatement this time. “It’s fair to say it’s been a challenging [...]
Tesco share price falls again: Chairman Sir Richard Broadbent steps down as profit overstatement is bigger than thought October 23, 2014 Shares in Tesco closed down 6.6 per cent in early afternoon trading, after the supermarket posted first-half results showing statutory profit before tax, which includes one-off items, collapsed by 91.9 per cent to £122m in the 26 weeks ended 23 August 2014. Sir Richard Broadbent, Tesco's chairman, announced he will step down, while the embattled [...]
Quiz: How well do you know your Tesco catastrophes? October 23, 2014 Has Tesco hit rock-bottom? The supermarket's chairman, Sir Richard Broadbent, announced his departure this morning on the back of first-half results showing the profit "overestimation" it had originally thought £250m, but £263m. The news sent Tesco shares down by a surprisingly muted 5.6 per cent in early afternoon trading, although analysts didn't mince their words when [...]
Quiz: How well do you know your Tesco catastrophes? October 23, 2014 Has Tesco hit rock-bottom? The supermarket's chairman, Sir Richard Broadbent, announced his departure this morning on the back of first-half results showing the profit "overestimation" it had originally thought £250m, but £263m. But this isn't the first time Tesco has come off the rails. How well do you know your Tesco catastrophes? Test yourself below. [...]
The good, the bad and the ugly: What the analysts say about Tesco October 23, 2014 It’s another dark day for Tesco. The supermarket's estimated £250m profit black hole was even larger than expected at £263m, £70m of which came prior to the period it initially identified as problematic. Profits collapsed 91.9 per cent as it took the hit of the accounting error, it completely ditched its forecasts, cash flow was [...]
Unilever share price falls as it records lowest growth in five years October 23, 2014 While Dave Lewis is putting out one fire at his new employer Tesco, things back at Unilever are also looking less than rosy. The consumer goods business, where Lewis had worked for 28 years before becoming Tesco chief executive, this morning reported its weakest rate of quarterly sales growth in five years. Underlying [...]
Who will replace Tesco chairman Richard Broadbent: Runners and riders October 23, 2014 Wanted: Heavyweight to lead a City institution. Must be good with numbers and new people. Retail knowledge preferred. Must be willing to have difficult conversations, understand customers and be confident in implementing new strategies. Hobbies should include "brand archeology". It’s a tough job. Is there anyone who would want to fill chairman Richard Broadbent’s shoes [...]