Competitors Step It Up
The battle over UK grocery industry is clearly heating up. Recent data suggests that Tesco Plc’s sales growth has fell to the lowest in five months. Meanwhile, discount competitors Aldi and Lidl are seeing a substantial boost in sales.
According to researcher Kantar Worldpanel, Tesco sales increased 0.3% in the 12 weeks that ended in January 29th – a considerable drop from the 1.3% increase in the prior month.[i] One source isn’t good enough for you? Nielsen data suggests the same trend.
Led by CEO Dave Lewis, Tesco has done a great in combatting discounters, but now it appears that the company needs to do more. Faced with potential economic challenges, UK shoppers are evidently opting for more affordable goods.
Meanwhile though, it doesn’t look as if investors are too concerned, possibly as the anticipated Booker Group deal is still on the table. For now, at least, the share price was little changed.
What does the future hold for Tesco? Will it overcome the competition and what will happen with giant the Booker takeover? At iFOREX you can invest in Tesco share CFDs with leverage as well as in the share CFDs of many other leading UK brands.
Any indication of past performance of a financial instrument is not a reliable indicator of current and/or future performance of such financial instrument.
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