I have written positively about Tesco shares but I am afraid the CEO did not see the problem clearly, his background on the shop floor led him to spend a lot of money on refurbishment, when the problem was more fundamental, and he gradually let the companies market position slide. Even Asda with the clothes line George have exceeded Tesco a sad state of affairs but show that Asda benefits from its owners long term vision.
The Board recognized this very late indeed and now are in a mess and have to bring in a rescuer Dave Lewis who did sterling work at Unilever but I am not clear why he seems to be a knight in shining armor and will reserve judgement. His background is solid in management but he has never been at the sharp end with customers.
The loss of the dividend payment shows the seriousness of the situation and the Board should be lambasted for letting things slip so long. I think they should have looked around at senior European supermarket executives as Carrefour did rather than going this way, but we will see.
One sees over time why Walmart is the premier company in this segment. Continual increases in dividends continual growth and a history of returning to shareholders.
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