Tesco CEO Philip Clarke has six months to reverse fortunes at ailing British retailer's U.K. stores before some investors lose faith, analyst says
June 11, 2012
– Tesco Plc. CEO Philip Clarke has six months to reverse fortunes at the ailing British retailer before some investors lose faith, said Tim Green of Brewin Dolphin Holdings Plc., Bloomberg reported June 11.
By the end of the year, investors “need to see some signs of progress,” Green added.
Clarke assumed direct control over Tesco’s British grocery unit approximately three months ago.
The retailer has experienced four consecutive quarters of declining sales, and its stock has fallen 25% in 2012 following the company’s downward revision in its profit outlook in January. During the 13-week period that ended on May 26, sales at Tesco’s British stores that had been open for at least a year fell 1.5% excluding value-added tax (VAT) and fuel, the company said on June 11. Comparable sales fell 1.6% during the precious quarter.
By the end of the year, investors “need to see some signs of progress,” said Tim Green of Brewin Dolphin Holdings Plc.
Great Britain accounts for approximately two-thirds of Tesco’s sales and profits.
The primary source of this article is Bloomberg, New York, New York, on June 11, 2012.