Tesco Is On Right Track: Springham

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

April 16 (Bloomberg) -- Stephen Springham, Analyst at Planet Retail, discusses headwinds for Tesco and outlook for the U.K’s largest retailer. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Sales are decreasing because of market share is dwindling.

We forget that it is still number one.

It is a huge real taylor.

-- huge retailer.

It has done so well for so long.

15, 20 years.

It has put together a sustained.

Of wonderful performance.

The moment that anything starts to go wrong, we are both surprised and shocked.

We knock it because it is so large.

It is by far the largest retailer in the u.k. it has a number of problems.

If you're philip clarke, is there a strategy overhaul that you need to do?

Is there a change of culture?

We often say he is the last man standing.

Is that good or bad?

The management issue concerns is.

It is hard to get a read on what is going on internally.

She is the last man standing and probably is not well in the boardroom.

That is going to be destabilizing to the business.

They have to shore that up.

The overall strategy will be pretty radical.

For all intents and purposes, it is.

What they are doing is along the right track.

Revitalizing the core hypermarket here in the u.k.. stream icing their overseas operations in italy.

It is not what it once was.

It is on the right track but these things take time.

Tesco is a big ship.

Big ships have very big earnings circles.

The international union is not doing so badly at all.

You say we have to give it time.

Is it six months, a year?

It is hard to put a timeframe on it.

I think philip clarke's has rightly not done so himself.

There are a number of market points, if you like.

This autumn, the modernized -- in the u.k. has set to be completed.

That is one measure we can look at.

The other is the storye refurbishment of tesco extra.

That is no small feat.

That is due to be completed by 12 -- by 2017. they're researching 120 stories this year in acceleration of last year.

The report has been 3%-5% per store.

That is a figure, but in the context of that business, that is quite a significant uplift.

How does it stack compared to other supermarkets?

We know that discounters are doing well, but in terms of if we take a step back and stop looking at quarter to quarter, is it something that you would like to own or something that you think is a great business?

It is a great business.

I think if you look outside the discounters, the big four are all struggling to varying degrees.

Morrison's is probably at the sharpest end of that.

This is an issue.

It is an industry-wide issue.

The key is there is no volume growth in food retailing at the moment.

A bit of inflation, but no volume.

That makes it hard for any business to prosper.

How do you increase volume?

Digital is one way.

Grocery commerce, two growth channels with an otherwise static market.

Tesco is very well placed in both of those markets.

It is the biggest player.

Joe shreve -- grocery commerce, question marks there as to how it could be.

Tesco is the largest player.

You have benefits of scale there.

Convenience stores -- tesco has more stores than other chains put together.

A lot of those stores need refurbishment, but it is a position of strength.

Stephen springham, thank you so much for your time.

We will tell you how maserati and hold the key to a turnaround.

?

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change