The market was expecting Buffet's move to scale back his investment in Tesco. The question is, at what rate will he do this, and how far will he go? We can only guess, but my view is that he sees Tesco's recovery taking far longer than he has left of his 'active trading life', and he won't want to leave Tesco as part of his legacy. The pace (or halt) of disposals will be determined to a large extent by the imminent statement from Tesco's new management team.
Tesco’s accounting scandal has created a culture of fear among its buyers and is impeding the running of the business, according to one of its major suppliers.
The Independent quoted a source at one of Tesco’s largest suppliers: “The confidence at Tesco is catastrophic. There’s no leadership and those in charge know nothing about Tesco.
“It’s not business as usual, because there’s no one to talk to any more. A load of people who you’d actually speak to are gone and the ones still there are in meetings all the time.
“Everyone feels as though they are under suspicion, with one eye over their shoulder.”
Eight Tesco directors have been suspended since chief executive Dave Lewis revealed it had overstated its profits by £250m. These include UK chief executive Chris Bush and UK finance director Carl Rogberg.
Deloitte and law firm Freshfields are investigating the accounting issues. However, the supplier source said that was leading to the business being run in a “legalistic way, not a commercial way – and that’s not good for business.”
Tesco boss Dave Lewis is poised to speak to the City to reveal the grocer’s interim results for the first time since being parachuted in last month.
one more thing, it doesn't seem that long ago, probably about 9-10 years ago that Tesco were constantly in the news about massive profits, in the billions, and that every £2 spent in a supermarket £1 went to Tesco. This wasn't long before the credit crunch starting to bite into peoples spending habits and maybe some animosity or resentment began to filter through. The recent news of company private jets shows an arrogance to consumers. Competition for our daily/weekly shopping money is fierce and Tesco have to raise the game and give more or be known as giving more to the consumer than "every little helps" ......
jim all you should be concerned about are how much your shares are worth and how much less the dividends will be in the future.Tesco could be busy but still not making enough profits due to high overheads. The previous regime were arrogant.They took their customers for granted and they also believed they had a god given right to always be a success no matter what. Tesco will take a very long time to be the force it once was, if it does recover that is as nothing is certain. Plus remember no company is too big to collapse and die.
Buffet is not a director in Tesco and has no influence on company stratergy. Him reducing his holding may be to buy in at a lower price. If buffet suddenly buys back in does that mean there are rosey times ahead...? Him selling out could equally mean he wants that money working in another company instead.
What is concerning of course is the number of suspended executives. which seems to beb getting bigger by the day It begs the question who is currently running the company.This investigation needs to step up perhaps they need someone like Kroll the secretive outfit who once represented the Coolmore Stud in their investigations into Man Utd at the time of the Glazers takeover few years back
Does'nt matter how many people a company employes,or how busy the car parks are-if the business model is outdated,the profits are seen to be falling,relationships with suppliers are poor,customers are voting with their feet the future looks grimm.The markets dictate the share price by its view of its future prospects-and Tesco's future is uncertain. I did my internet shop with Tesco this morning.No vouchers,no price match information,no offers(?),and unsuprisingly quite expensive.I do my mini shops in Lidl,Once they create a shopping experience that does'nt bring on acute depression,stop throwing stuff at me with a grimaceat the checkout,and join the internet revolution-I will reluctantly start to shop their.In the meantime I expected Tesco to be doing some dramatic things around price points.They haven't. And Mr Lewis is doing nothing to calm anxieties.Having said that-it feels like he's the only one running the business at the moment!.I hope for our pensions,the Ftse generally and the 1000's of employees who believed they had a job for life-he stands up and shows some leadership soon!Or is he still reading their E-mails as Rome burns?,I'm off to Asda next month-unless Tesco produce some interesting investor and customer statements on the 23rd.Still think the share price will hit 150p-and am starting to think this ship might sink-if their true level of debt is exposed,and overexposure to brick is sustained.On a final note I visited a Tesco xtra in Birmingham recently.Too big,could'nt find anything,deathly quiet-and a queue at the till-only 3 cashiers and a endless stream of un- staffed tills.Stomach churning frightening.Remenber no companies too bog too fall.GLA,DYOR.
The car parks are never empty because its the only place you can get free parking for a few hours in a town centre.... Next time you are in store have a glance at the shoppers trolleys, the majority are half full by the time they reach the check out. The reliance on supermarkets is turning. Agreed Tesco is a major employer and its highly unlikely to fail, but no company is too big to go under..... Jacks motto still rings true-stack it high sell it cheap
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