Shareholders tell Tesco to get UK house in order

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Shareholders have called on Tesco to regain its focus on UK grocery.

Investors urged the supermarket giant to put its US growth push on hold and concentrate on the core UK grocery business ahead of the long-awaited move into banking.

“Tesco needs to think long and hard about what it wants to be,” said Legal & General fund manager Richard Black. “Can it be everything to everyone, or should it focus on its gem, the British grocery business?”

The calls came ahead of Tesco’s next set of results, which are due next week (18 April).

Chief executive Phil Clarke – who has resumed control of the UK business following the surprise exit of Richard Brasher – is expected to set out details of major new investment in the UK.

A Tesco spokesman said: “We stay close to investors and know what they expect of Tesco.”

Last week Tesco closed its second-hand car business just a year after its launch, citing a lack of cars advertised on the site.

Readers' comments (1)

  • Disappointing although not unexpected that Tesco Cars has closed its doors so soon, I can tell you that the Tesco cars business failed because of inept management decisions, and that their owners/directors where simply not taken seriously in an industry that 'protects its own' (not Tesco staff rather the Carsite staff who took on the Tesco Brand, the wool pulled over the grocers eye here!!).
    The used car market not only wanted online used vehicle sales, but their is a strong desire from the car leasing community to support this channel. The benefit is two fold; the buyer doesn't have to pay the high dealer margins (win for the consumer and Tesco Customer!!!!) and the leasing company gets a higher return rather than through traditional auction/physical tyre kicking channels (more money back into some state owned banks, also good for the consumer etc!!) So it's only too obvious who losses, and unfortunelty the bank owned leasing companies don't manage their risk as they would any other risk based product, otherwise they would have realised that the day of buyers/sellers travelling up the countryside (I won't go down the green route, why? because we all have green policies, we just don't enforce/apply them!) to buy and sell used car stock, when I can pay for a team of staff and services to sell my 2nd hand cars!!!! and get a lower return!!!!! Tesco Cars have missed a great opportunity with a great brand to make an impact on a sector, that needs shaking up, with obvious benefits and profits, that in reality would only have made those in the 'used car industry' change their prehistoric approach to asset management!! The world has moved on, embraced the internet, but not for USED CARS, come-on Tesco's you have missed a great opportunity £350 profit / unit x10K units sold / month plus ancillary products!!!!!!

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