Tesco

Ticker TSCO

Today's data summary

Market open
% change
+0.42%
Price Pence
214.40
Change
+0.90
As of 14:48 23 Aug 2019
Market cap. Pound sterling
20,999.31 million
As of 14:48 23 Aug 2019

Latest updates

Big four supermarkets' sales fall

Morrisons
Getty Images

Tesco, Sainsbury's, Asda and Morrisons all saw sales drop in the three months to 11 August, according to data from research firm Kantar.

Morrisons recorded the biggest fall of 2.7% followed by Tesco.

Supermarket data
Kantar
New data shows a decline in market share compared to the three months to 12 August

Fraser McKevitt, head of retail and consumer insight at Kantar, says: “The memory of last year still looms large for retailers and this summer’s comparatively poor weather, combined with low levels of like-for-like price rises, have made growth hard to find for retailers".

In contrast, the German discounters Aldi and Lidl made big gains, with sales up 6.2% and 7.7% respectively.

Mr McKevitt said Lidl was boosted by opening new stores as well as a drive to persuade customers to do their "big shop" at its supermarkets.

He said the average basket spend is now nearly £19, 3% higher than last year, "though still significantly lower than the £22.65 average spend at the big four".

'Tesco Metro designed for a different market'

BBC Radio 5 Live

Tesco Metro store
Alamy

Now, we have more reaction to yesterday's news that Tesco plans to slash around 4,500 jobs from 153 of its Metro stores.

Ged Futter, who spent 15 years as a buyer at Asda, said the Metro store format was designed for a different market.

He told Wake Up to Money that people's shopping habits had changed since the stores were launched in the mid-90s.

Now, 70% of shoppers treat them as convenience stores rather than doing their big weekly shop there.

"It doesn't fit in the model now because you have the large stores where people will go for their big weekly shop and you have the convenience stores where a lot of people are doing their shopping now."

Tesco plans to 'simplify and reduce'

Tesco sign
Getty Images

Tesco said it will "simplify and reduce processes" at its 153 Tesco Metro stores.

"Simplify and reduce" could be instructions for making stock or soup, but what does it mean to the grocer?

The company explained it will mean:

  • faster and simpler ways of filling shelves, with fewer products stored in back rooms and more stock going straight to the shop floor;
  • colleagues working more flexibly across the store to improve customer service at the busiest times of the day and in the right areas of the store; and
  • a leaner management structure, as we simplify our ways of working.

Tesco job cuts blamed on 'challenging, evolving' environment

Announcing those 4,500 job losses, Tesco chief Jason Tarry said:

In a challenging, evolving retail environment, with increasing cost pressures, we have to continue to review the way we run our stores to ensure we reflect the way our customers are shopping and do so in the most efficient way. We do not take any decision which impacts colleagues lightly, but have to make sure we remain relevant for customers and operate a sustainable business now and in the future."

Breaking4,500 Tesco workers to lose their jobs

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 announced.

Tesco reportedly hiking prices

Tesco store with tree
Getty Images

Tesco has increased prices on more than 1,000 products in the past two week, according to the Press Association.

It reports that a five-pack of bananas has gone up from 90p to £1 while macaroni and linguine pasta have risen 30% to 65p.

This is despite Tesco's attempts to compete with discounters such as Aldi and Lidl.

PA quotes a Tesco spokesperson saying: "Over recent months, cost pressures have continued to build and impact the market.

"We've worked hard to offset these pressures, and focused on protecting our customers for as long as possible.

"But, like the wider market, we have had to reflect these pressures in the price of some products.

"For the majority of products that have increased in price over the last three weeks, we still beat or match the cheapest of the Big Four [Tesco, Sainsbury's, Asda and Morrisons]."

Tesco expanding further into Thailand

Children shop at a Tesco Lotus supermarket in Thailand
Tesco Lotus

Supermarket giant Tesco is to open 750 convenience stores across Thailand over the next three years.

The new plans will create up to 10,000 new jobs.

Tesco told the Mail on Sunday that it sees an opportunity in the country's emerging middle class.

Tesco already has more than 1,500 Express convenience stores and about 400 larger shops, hypermarkets and shopping malls in Thailand, trading under the Tesco Lotus brand, employing 46,000 full-time staff.