Tuesday, Jun 15, 2010
Can anyone explain the headline?
Dailymail: Tesco sales hit by plunging food inflation
Tesco also blamed comparisons with particularly high food inflation a year earlier
Posted by mark @ 09:46 AM (573 views) Add Comment
5 Comments
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1. Wageslavex14 said...
The Guardian has exactly the same headline. I expect it comes from a Tesco press release which is aimed at explaining to investors why sales growth has been low.
The idea that Tesco's bottom line growth, which is surely the important bit, can be adversely hit by low food price inflation, is pretty absurd. I'm also fairly sure that food price inflation has not been low over the past year.
2. Terry Knight said...
You could try Yahoo (a little further down the page):
"Weak Demand Slows Tesco Sales Growth
"Tesco has reported that like-for-like sales of food and other products grew by only 0.1% in the latest quarter.
"The UK's largest supermarket chain claimed its customers had reduced their spending on groceries because they were being stung by higher fuel prices. It said that factor, combined with very low food inflation, explained the marginal growth figure."
Whatever
3. i remember the 90`s said...
Our shopping bill has not not dropped ,if anything its gone up!!!!!!!!
4. mark said...
"housing market has been hit by plunging price hikes" makes about the same sense!!
i have noticed packet sizes have gone down even more and prices still going up..
it is the essentials too.. not something i would only buy once a year.
5. Anon said...
Ofcourse Tesco results can be hit by low food price inflation. Where do you think GDP growth comes from - the vast majority of it isn't real. The question is, has food price inflation been low - the answer from my anecdotal evidence is - NO.