Future of tesco, morrisons

hyposmurf

Tesco accounts face fresh inquiry for 2012, 2013 and 2014.

http://www.bbc.co.uk/news/business-30575040

Doesn't sound particularly great, perhaps these accounts problems are even more deep rooted, than they originally appeared.

Minrich

So more news recently on Tesco and Sainsburys , share price has been up and down for the last few weeks but what are MSE users views . From a personal point they state that the Defined Benefit Scheme is to be closed , is this for all employees or for just newcomers? Also no final dividend , which is the only reason we hold them.....Will they they revert back to what they used to pay ? If not (only the next couple of years will tell) we will offload all we hold .... But today i think is good news long term ...

gadgetmind

We continue to hold Sainsburys but do fear that they will join the ranks for the unforgiveable cutters.

Tescos have done a number of very bad things recently and it would take an investor far more trusting that myself to decide to put this faith in them.

InvestInPoker

Tesco lol.

planteria

yes, certainly interesting news coming out of Tesco today. perception is that Lewis is tackling the problem, at least part of which were left behind in a timely fashion by Leahy, far more directly than Clarke did. there has to still be value here at some point...but i am, for now, remaining out of UK grocery, and holding Amazon as my only 'retail' stock.

N9eav

I think that the ideal of profit increase is a stupid one.


While it must be a goal to increase profits year on year like for like, surely the whole point of being in business is to make a profit.


So what if it's smaller than last year? If you are making money, investing in the business and keeping people employed, then so be it.
Because companies have public shareholders is becomes so volatile when they don't get more dividends than before. Maybe everyone should be content to be in the black and not moan if they are 1% down on last year

Minrich

Tesco were able to increase profit over time due to creating new stores . This has stopped and they will only keep the most profitable ones. Thats good business practice as it IS a Shareholder owned company . There is No point in having shares if you don't make any money. We were happy with 5% dividend , it is part of our pension income afterall. We have lost value greatly over the last year or so as far as what our shares were worth , that is not that important to us as we hold for dividend only . Now we find we will not get our dividend of about £2000 at year end ! That WILL effect our standard of living more than the £40k we have lost (on paper) on the share value . As posted elsewhere we will be investing £500pm into the Tesco SAYE scheme for the next 5 years at £1.50 a share , hopefully that will give us our money back , so to speak over the next five years ?

gadgetmind

I wonder which stores they'll be closing? I guess they hope the displaced customers will move to their other stores rather than to rivals.

hyposmurf

gadgetmind wrote: »

I wonder which stores they'll be closing? I guess they hope the displaced customers will move to their other stores rather than to rivals.

Yeh I'm curious to see which ones.Meant to be mainly express stores.

They are also scrapping the dividend for 2014/15.

Here's a good update on which new stores won't go ahead:

http://www.theguardian.com/business/live/2015/jan/08/tesco-turnaround-plan-halfords-ceo-sales-blinkbox-business-live

gadgetmind

An interesting mixture of "elated" and "devastated" from residents.