Tesco Profit Declines Despite European Revival

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April 16 (Bloomberg) -- In today’s “Global Outlook,” Bryan Roberts, director of retail research at Kantar Retail, examines results from Tesco and looks at their business around the world on Bloomberg Television’s “The Pulse.”

Retailers are in the same position.

What are they getting right and what are they getting wrong?

Asked -- a lot of tesco's problems are from pure competition.

Look at the u.k. islands, there has been a massive fall in tesco's size.

Some of the products -- the problems they have are purely imposed upon them, such as the restrictions on opening hours in south korea.

They can do nothing about that.

The core of the business is the u.k. they did some great stuff in some of the more peripheral areas like technology, digital, convenience.

The fundamental problem remains.

They are losing market share from that core supermarket business.

Lots of issues there they need to correct.

Some of these will be long-term remedies.

How much longer do you think about numbers are going to continue to be posted?

If the discounters are being fairly nimble, are they going to keep chipping away?

How much longer are we going to see numbers falling?

We have already seen some measures being put in place.

We are finally seeing some signs of a turnaround.

What about the u.k.? i don't think there is any real silver bullet against this.

You can't be cheaper than the discounters on a profit basis.

They have great clarity and efficiency.

They can't be beaten?

Pretty much not.

It is not just about low prices.

What the supermarkets need to realize is that they are very easy to shop.

If you go into tesco at the moment, you have got long term price reductions.

You have fuel related savings, club card.

And credibly complicated.

You don't need the lowest prices.

Unique clarity.

What a repositioning?

Can they do more on digital?

They remain one of the great pioneers in terms of grocery commerce.

They continue to remain at the forefront.

In terms of being an industry leader in e-commerce.

That is still a very relatively small part of the business.

This time next year, will the numbers be improving?

I think they will be less bad.

I think we are in a structure will change now.

This isn't just about tesco's mistakes.

There is lots of structural shifts going on in the marketplace.

Tesco needs to improve merchandising and marketing.

All of these slowburn activities.

This is a big business.

It takes a long time to change shoppers' perceptions.

Make the right changes in store and start communicating those changes effectively.

Can international pick up where the u.k. is lagging?

That is what tesco has relied on for the last decade.

You have some high-growth markets, some high profitability markets in asia and central and eastern europe.

Sadly, central and eastern europe is a bloodbath at the moment.

Ireland is a bloodbath for tesco at the moment.

Asia has problems as well.

That has made recovery in the u.k. all the more vital.

It is not in a happy place at the moment but we are seeing some interesting noises today from tesco around pricing and store refits.

Brian, thank you so much for your time.

Up next, clashing over caviar.

We check out the british firm muscling in on this closely guarded industry.


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


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