Tesco sales shine
Tesco shares are trading higher by 3% this morning after a sales boost in the last 12 weeks, fuelled mainly by the good weather, and the Olympics. However, despite the boost, market share is still declining albeit at a slower pace which could possibly signal a return to growth in the not so distant future for the supermarket giant.
The share price currently trades at 164p, which is considerably higher than the low set last December at 137p. However there is a long way to go for those longer term investors who have held the shares from the £3 mark and above. The signs though are positive and this being put down to a simpler pricing model, and believe it or not fewer promotions.
As the summer draws out, Tesco will now be focusing on its Christmas strategy which could be a crucial phase for them if they want to continue the positive steps it has taken in the past 12 weeks. As far as the share price goes, it looks as though the tide may be turning but it has already risen 20% from that low point in December 2015, and whether or not there is enough momentum to see the price move another 20% towards the 200p mark remains to be seen.
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