German discounter Lidl has called Tesco (LON:TSCO) a ‘serial objector’ after its attempts to open a store were blocked, The Times has reported. The dispute comes amid the ongoing grocery war which has seen German discounters pressure the UK’s ‘Big Four’ supermarkets.
Tesco’s share price has jumped in London this morning, having added 1.10 percent to 212.00p as of 10:29 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.49 percent higher at 7,653.05 points. The group’s shares have added just under 12 percent to their value over the past year, as compared with a near seven-percent rise in the Footsie.
Lidl accuses grocer
The Times reported this morning that Lidl had accused Tesco of being a ‘serial objector’ after its attempts to open a store were blocked. The German discounter won permission from Limerick city council to demolish its supermarket at Punches Cross and replace it with a larger version, but permission was overturned by An Bord Pleanála.
Lidl claims that Tesco has lodged 20 appeals against its projects and has called on An Bord Pleanála to clarify the UK group’s bona fide interests and reasoning in its objection to the store. The Times meanwhile notes that Britain’s biggest grocer, which has a store nearby, has claimed that the size of the proposed store was excessive for a site zoned as a local centre and was inconsistent with retail planning guidelines.
Analysts on Tesco
Shore Capital remains bullish on Tesco, having reiterated its ‘buy’ stance on the stock this week, without specifying a price target on the shares, while Credit Suisse, which has an ‘underperform’ rating on the group, boosted its valuation on the stock from 165p to 185p. According to MarketBeat, Tesco currently has a consensus ‘hold’ rating and an average price target of 200.36p.