04.06.2014 - Tesco sales dropped in Q1
Largest in the UK grocery retailer Tesco has published data according to which in the first quarter of 2014 the company's sales fell amid struggle against competitors. Sales in May fell by 3.7% compared with last year, which was better than analysts' forecasts that had expected a decline of 4.0%. Sales in foreign stores decreased by 8.0%.
According to CEO Philip Clarke, the fall was due to the active business restructuring. In recent years, retail in the UK is going through an active phase of competition for buyers, which adversely affects the company's financial results.
Despite the difficulties, the prospects for further growth of the company's shares in the long term look attractive, but we do not recommend buying the company's shares before the end of summer.