Tesco’s juggernaut shows no sign of slowing down as it is expected to release record interim results next week.
Clive Black, retail analyst with Shore Capital, predicted that the UK’s biggest retailer was likely to announce a half year profit of £925m on Tuesday (September 20) compared with £822m for the same period last year. This, he said, would put it firmly on-track to post a full-year profit of £2.27bn.
Black said: “Tesco will stand apart from every other major food and general retailer, not just in the UK but throughout Europe in terms of growth.”
The retailer has faced an increasing number of protests recently from campaigners concerned that it is becoming too big. However, Mike Dennis of CAI Cheuvreux foresees a 14% growth in group sales and predicted that there would be no evidence in Tesco’s sales performance to suggest any customer backlash.
“Shoppers do not have the opinion that they can get too much of a good thing. It is hard to see why they would start going elsewhere.”
According to Black, Tesco will continue to deliver strong growth in food, non-food and internationally. The only blot on its copybook could be Tesco Personal Finance. “There has been a deterioration in the lending market and it is hard to see why Tesco would be immune from this,” he added.
l For the results as they break: www.thegrocer.co.uk
The Food and Drink Federation releases a report on Thursday that aims to demonstrate the huge strides companies have made in dealing with health concerns. The report will detail billions of pounds-worth of changes to formulations and advances in labelling.
Police are probing a suspected outbreak of sabotage at Allied Bakeries’ factory in Orpington, Kent, after foreign bodies were found in Kingsmill bread. The company has received five complaints involving fragments of glass and sewing needles inside the bread bags.
The Over Thirty Months rule for eating beef was ditched this week in favour of Defra’s BSE testing system, following advice from the FSA. Older cattle born before August 1, 1996, will still be banned for human consumption.
A new co-operative comes into operation on September 24 when Oxford, Swindon & Gloucester Co-op and West Midlands Co-operative Society merge to form the fourth-largest society in the UK. The boards, staff and members of the two co-ops have agreed the new society will be named The Midcounties Co-operative.
More than 50 suspected illegal immigrants have been picked up in a raid on a Walkers Snacks plant in Coventry. Randstad UK, which supplies agency staff to Walkers, said it had been deceived by “a sophisticated fraud”.
Newsagent and c-store operator TM Retail, which was bought out by its management last week, has announced a new deal with ATM supplier Bank Machine that could see cash machines appearing in most of its 1,300 stores.
Ronan Hegarty
health changes
sabotage?
OTms scrapped
a new co-op
immigrants seized
cashing in
Clive Black, retail analyst with Shore Capital, predicted that the UK’s biggest retailer was likely to announce a half year profit of £925m on Tuesday (September 20) compared with £822m for the same period last year. This, he said, would put it firmly on-track to post a full-year profit of £2.27bn.
Black said: “Tesco will stand apart from every other major food and general retailer, not just in the UK but throughout Europe in terms of growth.”
The retailer has faced an increasing number of protests recently from campaigners concerned that it is becoming too big. However, Mike Dennis of CAI Cheuvreux foresees a 14% growth in group sales and predicted that there would be no evidence in Tesco’s sales performance to suggest any customer backlash.
“Shoppers do not have the opinion that they can get too much of a good thing. It is hard to see why they would start going elsewhere.”
According to Black, Tesco will continue to deliver strong growth in food, non-food and internationally. The only blot on its copybook could be Tesco Personal Finance. “There has been a deterioration in the lending market and it is hard to see why Tesco would be immune from this,” he added.
The Food and Drink Federation releases a report on Thursday that aims to demonstrate the huge strides companies have made in dealing with health concerns. The report will detail billions of pounds-worth of changes to formulations and advances in labelling.
Police are probing a suspected outbreak of sabotage at Allied Bakeries’ factory in Orpington, Kent, after foreign bodies were found in Kingsmill bread. The company has received five complaints involving fragments of glass and sewing needles inside the bread bags.
The Over Thirty Months rule for eating beef was ditched this week in favour of Defra’s BSE testing system, following advice from the FSA. Older cattle born before August 1, 1996, will still be banned for human consumption.
A new co-operative comes into operation on September 24 when Oxford, Swindon & Gloucester Co-op and West Midlands Co-operative Society merge to form the fourth-largest society in the UK. The boards, staff and members of the two co-ops have agreed the new society will be named The Midcounties Co-operative.
More than 50 suspected illegal immigrants have been picked up in a raid on a Walkers Snacks plant in Coventry. Randstad UK, which supplies agency staff to Walkers, said it had been deceived by “a sophisticated fraud”.
Newsagent and c-store operator TM Retail, which was bought out by its management last week, has announced a new deal with ATM supplier Bank Machine that could see cash machines appearing in most of its 1,300 stores.
Ronan Hegarty
health changes
sabotage?
OTms scrapped
a new co-op
immigrants seized
cashing in
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