Over the past week circa £1bn of share value has been erased from British Supermarkets’ stocks following reports that sales for the industry were the slowest on record.
The supermarket big four , Tesco , Sainsbury , Asda and Morrisons have all suffrered , to varying degrees , from poor performances during the past year. This has been due in part to
price wars , prompted by the rise of the discounters in the UK such as Aldi and Lidl who have taken away many of the middle class core shoppers from the top four , falling commodity prices worldwide ,
static food inflation , the first of its kind and customers generally cutting back on their food spend during recessionary times.
Certainly the fact that Tesco’s has recently announced that it has over stated its accounts by £250m has sent shockwaves throughout the industry and just as importantly , If not more so , the investment community,
with some top fund managers publicly stating they will not be buying Tesco shares for the time being. With four of it’s most senior directors suspended pending an internal inquiry , its reputation as the premier retalier in the UK severely damaged , some key analysts are questioning whether this is just the tip of the iceberg for an already beleagured industry
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