Tesco was originally founded in 1919 and is now the UK's largest non-food retailer. It is operating in 14 markets across Europe, Asia and North America. It has many outlets including 'Extra', 'Superstores', 'Metro', 'Express' and 'Homeplus'.
the draw back to that argument is that of our interest rates go up those in USA will certainly and Europe may go up in tandem thus nullifying the exchange rate differential on those grounds. But I expect the pound to appreciate against the euro moderately and and depreciate against the US $
It also just occurred to me that a rise in interest rates will the effect of causing an appreciation in the pound meaning that imports become cheaper and exports become more expensive. As such, there might be a benefit that goods sourced from overseas become cheaper and that perhaps TSCO will feel the benefit of increased margins on them. I guess the extent of the benefit depends the proportion of sales made up by imports.
Aside from debt servicing, rising interest rates generally reduce asset prices. There is less incentive to borrow in order to purchase assets and with reference to property, the range of investment alternatives increases as rates rise. Tesco would appear to be subject to both higher debt servicing and greater difficulty in disposing of property assets that it has accumulated over the last decade or so.
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