Performance Evaluation of Tesco

Performance
Evaluation of Tesco
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Current trends in the supermarket
sector
 The supermarket chain Tesco is based in United kingdom (UK).
 As of 2018, the supermarket sector of the UK is dominated by
four company such as Sansbury’s, Tesco, Morrisons and Asda.
 However, discount stores gained significance over
supermarket chains from 2016 (Ismail 2017).
 Thus, it led to price war between two players in the
supermarket sector.
 one of the biggest players in the supermarket sector is the e-
commerce.

Tesco performance since October
2015
• As of 2015, the market capitalization of the company was 18.1 billion
pound.
• However, Tesco recorded loss of 4.6 billion pound in 2015 (Haddock-
Millar and Rigby 2015).
• In 2015, the company sold its on-demand video services Blinkbox.
• In 2016, Tesco sold its holding in Lazada Group and left with 8.3%
stake in the company, which was previously 8.6%.
• Though, it registered profit later but the growth remained slow.
• A charge of 235 million pound was taken by the company for the
accounting scandal of 2014.

Current performance of Tesco
 The cost of imported foods surged significantly due to the
Brexit vote.
 It created a price pressure on the prices of consumers and
costs of retailers.
 However, Tesco was able to keep its margin up amid Brexit
turmoil in 2017.
 As of 2019, the net income and operating income of the
company was 1320 million pound and 2206 million pound
respectively (Jiang, Wu and Zhu 2018).
 In 2019, the revenue recorded for the Tesco was 63911 million
pound.