surrey jim
Not in Surrey
What has gone so wrong for them? The highest retailer loss ever, and 5th highest loss of a British company ever.
Tesco report losses of £6.37Bn
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gregbrighton
New member
That's pretty awful. So much for David Cameron's buoyant economy if a big company can lose billions in a year. 
Budget supermarkets are booming. Everyone is skint and can't afford Tesco anymore.
CorgiRegisteredFriend
Well-known member
Tesco tried to take over the world. This loss is hilarious.
gregbrighton
New member
It's an example because wage growth has been stagnant, people have cut back.
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.
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
Not much sympathy from supply chain that has funded their growth over the past 20 years. Its all finally caught up with them
supaseagull
Well-known member
It's food is no better than Aldi and people have realised that.
It's karma for sacking me in 1979
Hillian1
( . ) ( . )
Employ a lot of people mind.
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).
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).
Norman Potting
Well-known member
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?
GingerBeerMan
3-0
- Dec 29, 2011
- 8,204
The jobs will remain, just shift to another store.
gripper stebson
Well-known member
- Jul 27, 2004
- 6,690
I imagine they are banking on sales of The Cutting Room to make up that figure!!
Bob!
Coffee Buyer
- Jul 5, 2003
- 11,630
Most of them subsidised by the Taxpayer through Tax Credits.
jakarta
Well-known member
That's pretty awful. So much for David Cameron's buoyant economy if a big company can lose billions in a year.
You don't really have a grasp of free market economics do you Mr Balls?
