Tesco shares hammered

atush

Greggs do well when people 'downsize' their eat out options.

But students love them and I can see them feeling poorer next year when fees treble. So if you bought them, keep your eye on them.

IronWolf

Greggs is great. Pasties have a sustainable price advantage over alternatives like sandwiches, and they're hot and taste better

VfM4meplse

I'm sure the Tesco share price will pick up in time, what has happened to the share price is reactionary.

ses6jwg

atush wrote: »

Greggs do well when people 'downsize' their eat out options.

But students love them and I can see them feeling poorer next year when fees treble. So if you bought them, keep your eye on them.

Have you walked past a Greggs lately at 1pm?

They're full of every type of individual you could think of, increasingly the suited and booted.

moneylover

Here is one retail report
http://www.talkingretail.com/news/industry-news/%E2%80%98tesco-thursday%E2%80%99-marks-new-era-for-supermarkets-says-city-analyst

snowcat53

Recall that Warren Buffet has been a big buyer into Tesco over the last few years. He bought 34 million shares in sept and holds 3.6%. I doubt he will be selling right now.

ses6jwg

Personally, I think people are starting to wake up to the fact that Tesco takes them for granted as customers and assumes people are stupid and people will continue to come back regardless of how they are treated.

Most of the supermarkets have recieved quite a bit of bad press in the last few months with regard to "discounts" i.e. putting the price up for a few weeks then bringing it back down and claiming it as a "big drop" - however Tesco seems to have bore the brunt of this bad press.

Many people are starting to resent Tesco's aggressive marketing and procurement strategy - I know quite a few people who have stopped shopping there simply because "it's Tesco" or because they disagree with the way that they treat their suppliers and their front line staff.

Personally, I feel that they will continue to face increased pressure from the alternative supermarkets such as Iceland, Aldi, and Lidl as slow growth continue and people look elsewhere for value. They also face pressure from traditional rivals such as Morrisons and Asda who, it seems to me, have been more innovative in some of their offers and discounting. People are starting to see through the traditional "price drop" and look for value with alternative things like buy 1 get 3 free and "price match".

cloud_dog

I'll just comment at a grocery level.........

We used to primarily shop at Tesco's.

The quality of their produce (grocery) started to slip.

We started to (go back) shop occasionally at Sainsbury's.

Tesco produce still didn't improve, we shopped more and more at Sainsbury's

A new Aldi opened up near us......... We tried it out.

Aldi produce was pretty good, and cheaper (much).

We tried Aldi out more and more, trying more of their 'stuff'. We pretty much liked most of the 'stuff' we tried (some we didn't).

The long and the short is that now over 60% of our grocery shopping is carried out in Aldi with Tesco and Sainsbury split 20/20 for the remainder.

cloud_dog

Thrugelmir wrote: »

Share price has merely returned to the level pre Christmas.

I assume the pre-Chrismas level you refer to is pre-pre-pre-pre-pre-pre-pre Christmas

Glen_Clark

I bought Tesco yesterday at 3.35. With all the wisdom of hindsight I should have waited till earlier today when Tesco were lower. (But at tleast the Morrisons I bought yesterday have made up for my losses on Tesco)
I am not expecting to see £4 again soon because the problem which drove down the price - lower sales, is more serious than the usual pretend pricewar which causes a temporary blip in supermarket shares every now and again.
But, as Warren Buffet says, don't buy a share you would not be confident to hold for the long term. And I still think Tesco are a good long term bet. So I don't plan to sell them for a long time.