TSCO.L - Tesco PLC

LSE - LSE Delayed Price. Currency in GBp
216.10
+3.00 (+1.41%)
At close: 4:35PM BST
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Previous Close213.10
Open212.20
Bid211.00 x 0
Ask217.00 x 0
Day's Range212.20 - 216.10
52 Week Range187.05 - 260.10
Volume17,879,321
Avg. Volume26,243,663
Market Cap21.164B
Beta (3Y Monthly)1.15
PE Ratio (TTM)15.89
EPS (TTM)13.60
Earnings DateOct 2, 2019
Forward Dividend & Yield0.06 (2.58%)
Ex-Dividend Date2019-05-16
1y Target Est269.93
  • Financial Times

    Investors Chronicle: Tesco, Morgan Sindall, Rolls-Royce

    Tesco’s shares have been sliding in recent months, and the declining growth rate is bound to have focused management’s minds. Tesco is planning to make operational changes to its Metro and some of its Express stores, in an overhaul that will lead to the loss of an expected 4,500 jobs.

  • Billionaire Shopper Is Happy to Wait in Line
    Bloomberg

    Billionaire Shopper Is Happy to Wait in Line

    (Bloomberg Opinion) -- Olaf Koch, chief executive of the German food wholesaler Metro AG, looks to have seen off a 5.8 billion euro ($6.5 billion) takeover attempt by the Czech billionaire Daniel Kretinsky. That’s both a blessing and a curse.On Monday, the bidding vehicle for Kretinsky and his business partner Patrik Tkac, said it had failed to convince two of the cash-and-carry group’s founding shareholders to back its 16 euro per share offer.With the holdouts (the Meridian Foundation and the Otto Beisheim Foundation) owning more than 20% of Metro’s shares, Kretinsky’s EP Global Commerce is unlikely to reach the 67.5% threshold for the transaction to succeed. The bidder said it won’t raise its price nor lower the minimum acceptance threshold. So the offer, due to expire on Wednesday, will probably lapse. Shares in the target company fell by about 6% to just above 14 euros on Tuesday morning.While Metro hasn’t responded to the Kretinsky vehicle’s statement, it no doubt welcomes the likely vanquishing of its predator. The grocer had argued that EP Global’s offer undervalued the group and that it had better prospects on its own.This is no unalloyed victory, though. Metro must now deliver on its promises. The company has struggled to improve its poor performance after a profit warning in April 2018, which was driven by problems in its Russia business, and a subsequent cut to its earnings outlook. While there was some improvement in its fiscal third quarter, helped by faster-growing markets such as supplying hotels and restaurants, it has a long way to go. There’s one bright spot: The company is in talks to dispose of its Real hypermarkets unit and is trying to sell a stake in its China operations. These deals could deliver proceeds of more than 1 billion euros.Even so, it’s hard to see why the group’s prospects will be much different from here on. Booker, the British wholesaler that is now part of Tesco Plc, was able to rejuvenate Metro’s British arm after it acquired the unit in 2012. But the German company hasn’t managed to do the same with its own businesses.If things don’t improve significantly in the next year, then Koch will be under severe pressure after seeing off the bid. What’s more, Kretinsky will still have a 17.5% stake in Metro and could agitate for change. That’s not a comfortable position for any chief executive.As we’ve noted before, the bidder is in a decent position whatever the outcome. If Koch does finally turn around Metro, Kretinsky would benefit as a big shareholder. If not, he can return with another bid. Should Metro continue to struggle, his hand may actually be strengthened.(This column was updated to clarify Metro's 2018 profit warning and earnings outlook cut.)To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Tesco to cut 4,500 jobs, reducing opening hours
    MarketWatch

    Tesco to cut 4,500 jobs, reducing opening hours

    The British supermarket giant on Monday announced plans to cut jobs and scale back operations at its smaller convenience stores, citing increased cost pressures.

  • Bloomberg

    Tesco to Cut 4,500 Jobs as Grocer Streamlines Metro Stores

    (Bloomberg) -- Tesco Plc plans to cut 4,500 jobs as the supermarket operator slims down hundreds of stores and adds to the mounting toll on employment in U.K. shopping districts.Britain’s biggest retailer said it will streamline operations at its 153 medium-size Metro stores in city centers, while reducing opening hours at 134 Express convenience stores.The moves announced Monday come on top of previous cuts at Tesco’s larger supermarkets, including closing fresh-food counters. Those changes were expected to affect as many as 9,000 of the company’s more than 300,000 workers.The new round of cuts comes as price competition among U.K. supermarkets intensifies, with discounters Lidl and Aldi gaining market share, and the threat of a disorderly Brexit hitting the value of the pound and raising the cost of imported food.“Given investors’ focus on margins in a market characterized by its competitiveness, we view these measures as a positive to help streamline the group cost base,” Morgan Stanley analyst Maria-Laura Adurno said in a note.Tesco shares traded 1.1% lower in London on Monday afternoon.Retail CrisisWhile the U.K.’s labor market remains tight, the Tesco cuts will add to the job losses in the retail industry as consumers increasingly shop online. Employment in the sector fell 2.3% in the second quarter from a year earlier, costing 72,000 jobs, according to the British Retail Consortium.The company said it’s making the changes at Metro stores because many customers are using them as convenience stores for everyday shopping, rather than making larger weekly purchases. That necessitates more flexible working and quicker ways of filling shelves, Tesco said in a statement, with fewer products stored in back rooms and more groceries going straight to the shop floor.Stock routines will also be simplified at Express stores, where hours will be reduced slightly during less busy periods, the company said.Tesco Chief Executive Officer Dave Lewis has pared costs aggressively since taking over in 2014. In June, Tesco’s credit rating was raised to investment grade by Moody’s Investors Service, which cited profitability gains and debt reduction.(Updates with BRC jobs data in seventh paragraph)\--With assistance from Lisa Pham.To contact the reporter on this story: Eric Pfanner in London at epfanner1@bloomberg.netTo contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Tesco to cut 4,500 jobs in Metro restructuring
    Reuters

    Tesco to cut 4,500 jobs in Metro restructuring

    British supermarket chain Tesco is cutting about 4,500 jobs from its Metro stores to improve the efficiency of a format that is increasingly used by customers daily rather than for a traditional weekly shop. Tesco, both the biggest retailer and largest private sector employer in Britain, is restructuring operations in response to changing consumer habits, driven by the rise of online shopping and increased competition from discounters Aldi and Lidl. The company said the changes in its 153 Metro stores - medium-sized shops found on Britain's shopping street and by railway stations - would allow it to shift stock more quickly to the shelves and cut the time it was held in the store room.

  • Reuters

    UPDATE 2-Tesco to cut 4,500 jobs in Metro restructuring

    British supermarket chain Tesco is cutting about 4,500 jobs from its Metro stores to improve the efficiency of a format that is increasingly used by customers daily rather than for a traditional weekly shop. Tesco, both the biggest retailer and largest private sector employer in Britain, is restructuring operations in response to changing consumer habits, driven by the rise of online shopping and increased competition from discounters Aldi and Lidl. The company said the changes in its 153 Metro stores - medium-sized shops found on Britain's shopping street and by railway stations - would allow it to shift stock more quickly to the shelves and cut the time it was held in the store room.

  • Financial Times

    Tesco to cut 4,500 jobs in revamp of Metro stores

    Tesco plans to axe up to 4,500 jobs, mainly at its town centre Metro stores, as it introduces changes designed to make the format more efficient. “The Metro format was originally designed for larger, weekly shops, but today nearly 70 per cent of customers use them as convenience stores, buying food for that day,” Tesco said in a statement.

  • Does Tesco (LON:TSCO) Have A Healthy Balance Sheet?
    Simply Wall St.

    Does Tesco (LON:TSCO) Have A Healthy Balance Sheet?

    The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

  • How Does Tesco PLC's (LON:TSCO) Earnings Growth Stack Up Against Industry Performance?
    Simply Wall St.

    How Does Tesco PLC's (LON:TSCO) Earnings Growth Stack Up Against Industry Performance?

    For long term investors, improvement in profitability and outperformance against the industry can be important...

  • Here's What You Should Know About Tesco PLC's (LON:TSCO) 2.5% Dividend Yield
    Simply Wall St.

    Here's What You Should Know About Tesco PLC's (LON:TSCO) 2.5% Dividend Yield

    Today we'll take a closer look at Tesco PLC (LON:TSCO) from a dividend investor's perspective. Owning a strong...

  • Are Tesco PLC's (LON:TSCO) Interest Costs Too High?
    Simply Wall St.

    Are Tesco PLC's (LON:TSCO) Interest Costs Too High?

    Tesco PLC (LON:TSCO), a large-cap worth UK£22b, comes to mind for investors seeking a strong and reliable stock...

  • Moody's

    Tesco Corporate Treasury Services plc -- Moody's announces completion of a periodic review of ratings of Tesco Plc

    Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Tesco Plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

  • Tesco Working on Cashierless Stores as Competition With Amazon Heats Up
    Bloomberg

    Tesco Working on Cashierless Stores as Competition With Amazon Heats Up

    (Bloomberg) -- Tesco Plc has turned to an Israeli startup for help as it looks to become the next major food retailer to remove cashiers from some of its stores.The U.K.’s largest grocery chain is working with Trigo Vision Ltd., which has developed a system of cameras and software that allows retailers to automatically charge customers, according to three people familiar with the matter.Tesco and other grocers are racing Amazon.com Inc., which could open as many as 3,000 checkout-free Amazon Go stores in the U.S. and is expanding its partnership with the U.K.’s Wm Morrison Supermarkets Plc. Scrapping cashiers could also help Tesco slim down its workforce over time and improve profit margins as it battles German discount chains Aldi and Lidl.At a capital markets day earlier this month, Tesco said it’s looking at a range of new technologies, also including robot delivery vehicles. Checkout-free stores are “one thing we’re testing, but it’s not something we’re ready to roll out yet,” a spokeswoman said, declining to comment on any business partners for the technology.Trigo, which has raised $7 million from Vertex Ventures and Hetz Ventures, has also partnered with Israel’s largest supermarket chain, Shufersal Ltd. The companies are working on the pilot branch in Tel Aviv, with the goal of rolling out the product in about a year.Other startups, including Portugal’s Sensei, are competing with Trigo to provide grocers with checkout-free technology. Tesco has previously trialed an app that allowed customers to scan and pay for groceries using their smartphone. The Scan Pay Go app was limited to staff at Tesco’s headquarters last year.To contact the reporter on this story: Yaacov Benmeleh in Tel Aviv at ybenmeleh@bloomberg.netTo contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Giles TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    Tesco Corporate Treasury Services plc -- Moody's upgrades Tesco to Baa3; stable outlook

    Moody's Investors Service has today assigned a new long-term issuer rating of Baa3 to Tesco plc (Tesco), the UK's largest grocer. Concurrently, Moody's has upgraded the senior unsecured ratings of Tesco and its guaranteed subsidiary Tesco Corporate Treasury Services plc to Baa3 from Ba1 and the short-term of Tesco and its guaranteed subsidiary Tesco Treasury Services PLC to Prime-3 from Not Prime.

  • Bloomberg

    Billionaire's $6.6 Billion Bid Comes with Strings

    (Bloomberg Opinion) -- Even the most unloved companies in the least popular industries can attract takeover interest in the end.The tentative 5.8 billion-euro ($6.6 billion) offer for German’s Metro AG shows that investors can see value in the most unlikely places. Part of the allure must be that the food wholesaler’s defense options are so very limited.Metro split into two in 2017, hiving off its consumer electronics business into Ceconomy AG. Since then, the remaining wholesale business has struggled under CEO Olaf Koch: By July last year, 12 months on from the demerger, its shares were down by about 45%.In August, billionaire Daniel Kretinsky and business partner Patrik Tkac acquired a stake from the Haniel family, one of Metro’s three big shareholders. Now the duo are back with an attempt to buy most of the company through their vehicle EP Global Commerce VI GmbH. The Haniels have pledged their remaining stake.The offer is clearly opportunistic. At 16 euros a share, it is just 3% above Friday’s close. That widens to a 35% premium to the price in August. Identifying the undisturbed share price here isn’t easy: Metro has gained on the expectation of a bid, but Koch, too, has been working hard to turn the company around.The CEO will have difficulty fighting this off. Finding alternative bidders will not be easy given the challenges facing the industry. Sales have been declining and private equity firms are likely to be wary. Metro might look superficially tempting to Tesco Plc, which bought U.K. wholesaler Booker last year. But notably absent from the grocer’s investor update last week were any plans to expand Booker internationally.If there’s any prospect of a counter-bid, it would most plausibly come from Asia. Metro is in the process of selling its Chinese arm perhaps for as much as $2 billion. Potential buyers may now see the opportunity to buy the whole group.Koch can really only try to argue that shareholders would miss out on a recovery by selling now. EP Global would bring no industrial synergies to a deal: There is nothing it can do that Metro shouldn’t be able to do by itself. The snag is that Koch has been around for seven years and has had ample chance to try.The attitude of the big shareholders will be critical. The Haniels seem to be losing patience. What Meridian Stiftung, with 14%, and Otto Beisheim foundation, with 7%, think isn’t yet clear.If Kretinsky's offer gets him to about 75% ownership, he could reach a so-called domination agreement, giving him control of the group’s cashflow without having to buy the whole company. If other shareholders consent, he might be able to secure such an accord with a lower stake. They might well do so, as these deals typically involve a guaranteed backstop price for minorities and decent dividends in the meantime.If Metro finds a buyer willing to pay more, Kretinsky would still get out at a profit. Or, if he struggles to get enough support, he could walk away. The offer is provisional. EP Global already had options to buy shares from the Haniels and others that would have taken it above the 30% threshold that would force a mandatory bid under German rules. Instead, it has structured the offer as conditional on reaching an as yet unstated acceptance hurdle. That keeps EP off the hook – hence the shares haven't risen much above the price being dangled.Credit to Kretinsky: He appears to win in every scenario. Koch by contrast, has a fight on his hands.\--With assistance from Andrea Felsted.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • The Bitter Contest for China’s Online Shoppers
    Bloomberg

    The Bitter Contest for China’s Online Shoppers

    (Bloomberg Opinion) -- Carrefour SA, Europe's largest retailer,  may be the latest Western company to pull back from China. It’s unlikely to be the last.On Monday, the hypermarket operator said it would sell 80% of its China business for 4.8 billion yuan ($699 million) in cash to Suning.com, the Chinese retailer backed by Alibaba Group Holding Ltd. Carrefour will retain a 20% stake. Over the past few years, the French company’s plans to shrink its China footprint has been one of the worst-kept secrets in banking. Though Carrefour sold the business pretty cheaply – with a valuation of 0.2 times 2018 sales, compared with the industry average of 0.84, according to Citigroup Inc. – loosening its ties to the mainland may be a smart move, whatever the price. With sales in the country flagging and losses piling up, the deal comes as China’s macroeconomic picture is also darkening.Yet the key challenge for Carrefour preceded the trade war. In recent years, online-only players such as Alibaba have been piling pressure on brick-and-mortar operations, with Tesco Plc, Best Buy Co. and Marks & Spencer Plc each announcing plans to pull back from the mainland market. Carrefour’s share of the country’s hypermarket segment fell to 4.6% last year from 8.2% in 2009, Citi writes.(1)   That’s a problem in a country with one of the world’s biggest rates of e-commerce penetration. China's online retail sales reached 3.86 trillion yuan in the first five months of this year, accounting for more than one-fifth of the country's total purchases of consumer goods, according to a recent report by the Chinese Academy of Social Sciences. To make matters worse, foreign brands no longer have the cachet they once enjoyed – at least in low-end consumer goods. In a survey last year, Credit Suisse AG said that Chinese consumers preferred domestic purveyors in categories like food and drinks and home appliances. With the trade war whipping up nationalist fervor, that trend may accelerate: The bank's latest poll of shoppers 18 to 29 years old showed that 41% preferred phones made by Huawei Technologies Co., up from 28%, while interest for Apple Inc.’s products fell to 28% from 40%.For many firms, ceding control to a local partner is probably the best way forward. Carrefour appears to be borrowing a page from the playbook of McDonald’s Corp., which sold 80% of its China business in 2017 to a tie-up between state giant Citic Group Corp. and private equity firm Carlyle Group LP.Or consider Walmart Inc., which sold its e-commerce delivery site to JD.com Inc. in 2016 in exchange for a stake in the Chinese retailer. The U.S. firm now aims to open 40 of its Sam’s Club stores in China by 2020. Costco Wholesale Corp. is also betting on China’s appetite for bulk buying, with plans to open its first bricks-and-mortar store in August. Whether Costco can pull this off without a local partner remains unclear.What is clear is that Carrefour won’t be the last retailer to rethink its China strategy. Germany's Metro AG is also looking to sell its $1.5 billion Chinese business. At a time when Chinese acquisitions overseas have dried up, bankers at least can thank Western firms for managing to drum up some business from the mainland. (1) The bank citesEuromonitor International research.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Barrons.com

    How to Win in the Cutthroat Grocery Business, According to Tesco CEO Dave Lewis

    Dave Lewis, one of our World’s Best CEOs of 2019, turned around Britain’s largest grocer. There are lessons here for the rest of the industry.

  • Britain's Tesco says no timetable for 'finest' store launch
    Reuters

    Britain's Tesco says no timetable for 'finest' store launch

    Tesco, Britain's biggest retailer, said it is considering a trial of an upmarket convenience store under the 'Tesco finest' banner but has not disclosed when or where a pilot will be launched. Tesco hosted a capital markets day for analysts and investors on Tuesday at which it presented a slide flagging an opportunity for a 'Tesco finest' store concept with a 7% operating margin - significantly ahead of the group-wide target of 3.5% to 4%. The premium 'finest' range of grocery products is Tesco's most expensive.

  • Britain's Tesco targets further margin improvement
    Reuters

    Britain's Tesco targets further margin improvement

    Tesco, Britain's biggest retailer, is targeting expansion of its profit margin beyond that of an existing multi-year recovery plan, it said on Tuesday. Celebrating its 100th anniversary, the group is deep into a turnaround programme under Chief Executive Dave Lewis after a 2014 accounting scandal capped a dramatic downturn in its fortunes. At a Capital Markets Day (CMD) presentation to analysts and investors, Tesco also said its priority for allocating capital was reinvesting in the business, maintaining its debt ratios and growing its dividend.

  • If You Like EPS Growth Then Check Out Tesco (LON:TSCO) Before It's Too Late
    Simply Wall St.

    If You Like EPS Growth Then Check Out Tesco (LON:TSCO) Before It's Too Late

    Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

  • Tesco has no plans to exit central Europe: chairman
    Reuters

    Tesco has no plans to exit central Europe: chairman

    British retailer Tesco has no plans to exit its central European operations, Chairman John Allan said on Thursday. At Tesco's annual shareholder meeting an investor asked if the group would still own central European operations by December 2020. "I've been taught never say never because things may change but at the moment we have no plans that the board has discussed or approved to exit central Europe," he said at the meeting held at Tesco's headquarters in Welwyn, north of London, which was webcast.

  • Amazon's Assault on Britain Has Gone Up a Notch
    Bloomberg

    Amazon's Assault on Britain Has Gone Up a Notch

    (Bloomberg Opinion) -- The changing nature of food retailing was laid bare on Thursday with lower-than-expected U.K. sales growth at Tesco Plc and Amazon.com Inc. expanding its partnership with the smaller British chain Wm Morrison Supermarkets Plc.Amazon’s agreement with Morrisons, while still fairly small right now, shows the ambitions of the online giant toward the U.K., already one of the world’s most competitive retail sectors. That will strike fear into the hearts of supermarket behemoths such as Tesco, Britain’s grocery leader. Tesco has been trying to bolster its defenses, and a slowdown in growth in the three months to May 25 shouldn’t be too surprising. All retailers face extremely difficult comparisons with the same period last year, when Britain was basking in sunny weather and enjoying a royal wedding. The company’s CEO, Dave Lewis, remains on course to hit his target for an operating margin of 3.5% to 4% by February next year.Still, the first-quarter slowdown doesn’t exactly inspire confidence about what happens once that margin target is reached. The company updates the City next week on how it can find ways to bolster sales and profit. It’s staying tight-lipped for now, but making more of its use of customer data — including through its Clubcard loyalty scheme — might be on the agenda. Lewis has talked before about developing the property around its stores. That could become a bigger part of cash flow, too.Tesco could also work more closely with Booker Group Ltd., a recently acquired food wholesaler. It’s experimenting already with putting cash-and-carry outlets in Tesco stores and introducing dedicated bulk-buy areas, with one eye on becoming Britain’s answer to America’s Costco Wholesale Corp. Wisely, it has also set up a purchasing alliance with Carrefour SA, the French supermarket chain.But as the quarter showed, life isn’t getting any easier for Tesco. Aldi and Lidl, the cutthroat German discount grocers, are still powering ahead in Britain, putting enormous pressure on the traditional giants.That makes Amazon’s advances all the more fraught. Morrisons, the U.K.’s fourth-biggest supermarket group, said on Thursday that it was expanding its super-fast grocery delivery service for Amazon customers. Nine regions in England and Scotland will now offer this, up from four. The aim is for nationwide coverage.The rapid roll-out of the Amazon partnership has been facilitated by another smart move by Morrisons chief executive David Potts, who started his supermarket career on the shop floor. He has negotiated an end to his company’s exclusive relationship with Ocado Group Plc, the specialist online grocer. That has opened the door to closer ties with Amazon.Beset by price-slashing German rivals on one side and savvy online operators on the other, Tesco and its ilk are going to have to work hard to keep food in their investors’ mouths.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.