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Tesco’s retreat

348fb884-5e66-45a1-a77b-7e19bcda31bc-1020x612Although you can sense an element of inevitableglee in this Guardian piece at Tesco’s troubles, it is quite revealing in the detail of the proposed closures and retrenchment from future developments. Whichever way you look at it, Tescos are now a bit of a mess.

A few questions spring to mind. Firstly what is the cumulative effect going to be on future sales? Negative publicity works across the board and whilst the average shopper will not change supermarkets because of accounting misdemeanors, they will get this image of a company that doesn’t know what its doing.

Coming back to the accounting fraud ( and yes that is what it was), what action is being taken against the auditors who clearly were compliant in this pretty obvious con? I believe that the strongest action is absolutely essential, even if it meant suspending a licence to audit

Lastly, the article does point to the effect on “the communities”. That is to be expected from that paper but if the market is there for a new supermarket or simply a local Metro then surely another chain would step in? Food retailing is not exactly dead on its feet. If the market isn’t there, then the community is suffering not having something it wasn’t really entitled to in the first place.

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