Is It the Right Time to Invest in Tesco Shares?

Are you planning to invest in Tesco shares? In March 2014 it was reported that Tesco’s share of the grocery shopping market within the United Kingdom was at its lowest point for nearly a decade. The supermarket had, it transpired, lost customers to both Lidl and Aldi, discount supermarket chains. At its peak, Tesco’s market share was 31.7 % in 2007, but as of March 2014 it was a humble 28.7%. Read on for more information which should help you to decide whether or not to invest in Tesco shares.

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Tesco Shares Free ReportChief Executive of Tesco, Philip Clarke, stated that he wished to tackle disappointing results both by ‘revamping’ Tesco stores and by cutting grocery prices, including the price of everyday staples such as milk, carrots and cucumber. This is key to note if you are thinking about whether you should invest in Tesco shares. Indeed, Clarke announced to a conference that he intended to spend £1.5 billion to modernise all the stores by the year 2017 and that he was ‘determined’ that Tesco be reappraised, arguing that the Tesco business was improving. It appears there is a lot to reflect on regarding the question of whether it is the right time to invest in Tesco shares.

Despite these positive sentiments, shareholders will be less than pleased to see that share prices are down by almost 20% since the September of 2013. Those who have already decided to invest in Tesco shares might take some comfort in the fact that at the same time Tesco announced these results, the grocery market in the United Kingdom was on a whole experiencing the slowest sales rate since 2005. In the twelve week period leading to March 2nd 2014, the UK market for grocery stores had grown by only 2.2%. If you need more information about how to invest in Tesco shares, why not contact a reputable brokerage firm today?