Home » Stocks & Shares » Tesco share price dips amid flat sales data

Tesco share price dips amid flat sales data

Tesco’s share price (LON:TSCO) has fallen deep into the red in today’s session as the latest Kantar data pointed to flat sales at Britain’s biggest grocer for the 12 weeks ended June 16. The update follows the FTSE 100 supermarket’s recent quarterly results, with Tesco posting what  it referred to as ‘outperformance in a subdued market’.

As of 09:21 BST, Tesco’s share price had given up 2.20 percent to 226.20p, underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.22 percent lower at 7,400.03 points. The group’s shares have given up about 13 percent of their value over the past year, as compared with about a 1.5-percent fall in the Footsie.

Latest Kantar data

Kantar Worldpanel announced in a statement today that UK supermarket sales had grown 1.4 percent year-on-year in the 12 weeks to June 16.

“The modest level of current growth is thanks in no small part to the wet start to the summer, with last year’s heatwave and the run up to the men’s FIFA World Cup making 2018 a difficult year to top,” Fraser McKevitt, head of retail and consumer insight at Kantar, commented in the statement.

At Tesco, sales came in flat year-on-year, despite an increase in volumes. This was caused by the average price paid per pack falling with sales of the grocer’s value own label lines increasing by 11 percent, and its ‘100 Years of Great Value’ campaign continuing to offer lower prices. Kantar said that Tesco had remained the country’s largest retailer, even as its market share fell by 0.4 percentage points to 27.3 percent during the reported period.

Analysts on Tesco

The 13 analysts offering 12-month targets for the Tesco share price for the Financial Times have a median target of 276.00p, with a high estimate of 315.00p and a low estimate of 220.00p. As of June 21, the consensus forecast amongst 22 polled investment analysts covering the blue-chip grocer has it that the company will outperform the market.

About the author

Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.