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Tesco report losses of £6.37Bn



surrey jim

Not in Surrey
Aug 2, 2005
18,085
Bevendean
What has gone so wrong for them? The highest retailer loss ever, and 5th highest loss of a British company ever.
 






Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,198
The Fatherland
What has gone so wrong for them? The highest retailer loss ever, and 5th highest loss of a British company ever.

Budget supermarkets are booming. Everyone is skint and can't afford Tesco anymore.
 


fleet

Well-known member
Jul 28, 2003
12,222
It is just an accounting adjustment to set them up for the future. They have an increase in trading profit but have decided to say that their stores and property have a lower value. It will help them for the future to adjust these values now.
 








mwrpoole

Well-known member
Sep 10, 2010
1,504
Sevenoaks
LONDON (Reuters) - Britain's biggest retailer Tesco posted the worst annual loss in its 96-year history on Wednesday after writing down the value of its stores by 4.7 billion pounds.

Also hurt by an accounting scandal and sliding sales due to pressure from discounters and a brutal price war the supermarket made a statutory pretax loss of 6.38 billion pounds in the year to Feb. 28.

Tesco's trading profit was 1.4 billion pounds, in line with company guidance but less than half of the 3.3 billion pounds made the year before and a third straight year of decline.

The firm also revealed it had net debt of 8.5 billion pounds and a net pension deficit of 3.9 billion pounds.

The results highlight the work needed to mend Tesco's finances under new boss Dave Lewis.
 




nicko31

Well-known member
Jan 7, 2010
17,522
Gods country fortnightly
Not much sympathy from supply chain that has funded their growth over the past 20 years. Its all finally caught up with them
 










essbee

New member
Jan 5, 2005
3,656
...and for compulsory purchase of my neighbours daughter's house. Wan*ers the lot of them and I hope
the whole company collapses.
 






simmo

Well-known member
Feb 8, 2008
2,786
They have just got a new CEO in and by all accounts he is trying to get all the bad news out into the open now and say here you go this is how dire it really is. The major problems for Tesco's are Lidl and Aldi (to put it in a nutshell). Since the financial crash people are much more savvy about the prices they pay for goods.

Also their business model from 10 years or so ago had them building lots of out of town huge stores (they visualised people would come in their car and do one large shop a week).

When what the people want are internet shopping and smaller in town convenience stores (where they may pop into multiple times in a week).
 


Due to write down of property values mainly, but there was a mention of massive hole in the Pension fund. Made a trading profit thought. Remember that "profit is only an accountants opinion" - any accountants on here that understand such things care to enlighten us of the reasons?
 













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