The BBC says this morning that Tesco has reported that its most recent quarterly sales in the UK were down 3.7 percent - the third straight quarter of falling sales - and a six percent drop in profit during April. At the same time, the story says, "data from grocery market analysts Kantar Worldpanel showed Tesco's market share declined to 29% in the three months to 25 May from 30.5% a year earlier, while sales fell 3.1%."
Bloomberg notes that "in three years at the helm, Chief Executive Officer Philip Clarke has been unable to halt a decline in Tesco’s market share as customers have deserted the chain for lower prices at Aldi and Lidl, and luxury food from Waitrose." Tesco has responded to the challenge by lowering prices and remodeling stores, but as yet the strategy has not seem to have had any measurable positive impact. And Clarke has said that the company will continue to face challenges for the foreseeable future.
Bloomberg notes that "in three years at the helm, Chief Executive Officer Philip Clarke has been unable to halt a decline in Tesco’s market share as customers have deserted the chain for lower prices at Aldi and Lidl, and luxury food from Waitrose." Tesco has responded to the challenge by lowering prices and remodeling stores, but as yet the strategy has not seem to have had any measurable positive impact. And Clarke has said that the company will continue to face challenges for the foreseeable future.
- KC's View:
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The news just doesn't seem to improve for Tesco, which can't seem to get a break. From what I hear, morale is in the toilet … and it is hard for me to imagine that, if the board is paying any attention at all, that Clarke is not fast approaching his expiration date.
