The retail sector has been under immense pressure in recent years as consumers have tightened their belts and shifted their spending habits. This has been particularly apparent in the UK, where the ‘big four’ Supermarkets – Tesco, Sainsbury’s, Asda and Morrisons – have all been feeling the squeeze.
Tesco, the largest of the four, has been hit harder than most. In 2014, it was embroiled in a major scandal over accounting irregularities, which led to a dramatic drop in its share price.
The company has also been struggling to compete with the likes of Aldi and Lidl, who have been eating into its market share.
Despite all of this, Tesco remains a giant of the retail sector. It is still the UK’s largest supermarket chain, with over 3,000 stores across the country.
It also has a significant international presence, with operations in 11 countries.
So, is Tesco a buy or sell?
Tesco is a difficult company to assess at the moment. On the one hand, it is still a giant of the retail sector with a strong international presence.
On the other hand, it has been struggling in recent years and faces stiff competition from Aldi and Lidl. For these reasons, we believe Tesco is a hold for now.