Mixed bag for top UK grocers
“It’s just a matter of finding the right products that actually make money for a bricks business but we can also sell online in a multichannel environment and we’ve found those. A paper shop, celebrations, party, toys, home and cookware, these are all great categories and are already doing well in the test stores that we’ve put them in to.”
Tesco was once the envy of UK retailers.
But a costly exit from the United States, the European economic crisis and the horsemeat scandal have all added to its problems.
BGC’s Mike Ingram says their previous focus on massive out of town stores hasn’t helped.
SOUNDBITE (English) MIKE INGRAM, MARKET ANALYST, BGC PARTNERS, SAYING:
“You’ve pretty much got saturation in terms of coverage in the UK whereas Sainsbury’s actually has quite a lot of room to grow in the no Swarovski Jewelry rth of the country. Consumer tastes have pivoted more towards smaller, in town convenience stores, this is a sort of format that Tesco doesn’t have any more.”
Tesco did manage to r Swarovski Jewelry etain its UK trading margin at 5 percent in the first half.
But the group’s trading profit has fallen by almost a quarter in that time and by more than two thirds in continental Europe.
Tesco shares fell three percent after the results Sainsbury’s dropped a little too but over the past year their value has risen 13%.
Mixed bag for top UK grocers (2:04)
Oct. 2 The battle for grocery sales in the UK is hotting up with number three grocer J Sainsbury again outperforming profit hit frontrunner Tesco. Thomson Reuters journalists are sub Swarovski Jewelry ject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.