In the interest of intellectual honesty, I should say I’ve been pretty positive on Tesco for a long time – most of the way down, to be honest, so I was a little sheepish after Tesco released yet another poor trading statement last week. The behemoth seems to lurch from wound to wound, dragging more investors down with it, and tanking sentiment along the way. Not many people are sticking up for it at the moment.
I have to say, I disliked the trading update too – though maybe for different reasons to most people. I’m completely with cutting the dividend – absolutely no problem – and the trading profit figure for the year looks fine, too. Entirely unsurprising. What I really dislike, though, is the line that they’re ‘implementing further reductions in capital expenditure’. I’m no expert – far from it – I’m just an interested observer. What I really can’t abide, though, is having no idea what’s going on at a company. Clarke, the outward CEO, was talking about the need for a wide-ranging store refresh – something which I shrugged and probably agreed with.