business news in context, analysis with attitude

• The Wall Street Journal reports that while Tesco managed to stop the sales decline that had afflicted it in its UK home market, the company continues to suffer from “low UK consumer confidence, high inflation and fears over job security. It lags its competitors in same-store sales in the home market it dominates by market share, although its international business is growing strongly.” Nonfood sales, especially electronics, continue to be a problem for the company, dropping five percent in the first quarter.

In the US however, the Journal writes, Tesco’s Fresh & Easy Neighborhood Market business “reported double-digit sales growth of 11.1%, up from 8.6% sequentially.” The company says that “the improving trajectory is needed if the company is to reach the its target of breaking even towards the end of fiscal 2013.”
KC's View: