Tesco share price: Megastore to open in Northern Ireland this year
iNVEZZ.com, Tuesday, January 21: The UK’s largest supermarket chain, Tesco Plc (LON:TSCO) plans to kick off work on its much-delayed megastore in Northern Ireland. BBC today reported that the grocer will start work on the multi-million pound project this spring and open the megastore to customers by the year end.
Tesco has outlined its intensions to proceed with a large ‘Extra’ store next to its Outlet centre at the County Down site following a lengthy planning battle.
The retailer had originally planned an 80,000-sq-ft store but the proposals now involve a 60,000-sq-ft facility with the additional 20,000-sq-ft rented out to another tenant or tenants — either another retailer or for leisure use. Two planning applications are currently being considered that need to be approved before Tesco can subdivide the store and allow leisure use.
The BBC quoted a Tesco spokesperson as saying: “We are excited to be taking forward plans for a new Tesco Extra in Banbridge at Bridgewater Park. The store represents a multi-million pound investment in the local area and will create over 250 jobs.”
**Tesco share price remains subdued**
Tesco’s share price fell more than one percent yesterday, after the supermarket giant was reported to be weighing a bid for baby products chain Mothercare (LON:MTC).
The news seem to have taken industry observers by surprise given Tesco’s focus on improving capital discipline. Some analysts, including Cantor Fitzgerald and Shore Capital, warned that the grocer should wait until struggling Mothercare’s financial position has deteriorated further before placing a takeover offer.
Cantor’s Mike Dennis said: “Tesco should avoid this one or wait till Mothercare’s share price is significantly more distressed.” Shore Capital’s Clive Black also remarked that instead of an outright bid, “Tesco may be speaking to Mothercare about taking space in what are now a number of over-spaced Extra hypermarkets in the UK.”
The bearish sentiment for the potential move weighed on Tesco’s share price, and the stock closed 1.3 percent lower yesterday. Although gaining some ground, the retailer remained subdued today. As of 14:35 UTC, Tesco’s shares traded 0.17 percent up at 330.15p.
According to AnalystRatingsNetwork data, 11 research analysts have a ‘sell’ rating on Tesco, nine have it as a ‘hold’ and 13 call it a ‘buy’. The stock’s average rating is ‘hold’ with a consensus price target of 372.96p.
**As of 14:23 UTC, buy Tesco shares at 330.65p.**
**As of 14:23 UTC, sell Tesco shares at 330.50p.**
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