The largest loss in the history of Tesco was reported by the company. Tesco PLC reached its all time low with most turbulent year after 96 years of successful grocery business. The British multinational informed that loss was around £6.38 billion ($9.52 billion), versus a profit of £2.26 billion last year. The report of earnings till February 28 also informed that company spent £4.7 billion for repairing the fixed assets. Tesco had to suffer lot for its survival last year because both Chief Executive and Financial Chief resigned from the company. Overstatement of account, which triggered a criminal investigation along with the employee suspension added fuel to the fire. Tesco’s shares are all time low since last decade. Even Warren Buffet, an investment tycoon called his Tesco shares ‘A HUGE MISTAKE.’
Lidl and Aldi are snatching customers from the Tesco. The competition has reached to the lethal level as competitors are offering high discounts as compared to Tesco. The analysts are hoping the New Chief Executive Dave Lewis is going to save company from the potential collapse. Lewis informed press that the results published are reflecting demise of the competitiveness of Tesco and shrinking market base.
Despite tough conditions stock market has reacted bit positively towards investment sentiment in the Tesco. Share values increased around 0.7 percent in London. There no major negative event for the Tesco and pension deficit is less bad than expected. The CEO has been working on boosting sell and increasing values on the stock market. All less profitable stores have been closed by the Tesco and product range has also decreased.