Of course, no retailer would be happy to record its worst quarter in its home market for years, as Tesco did, but the UK sales recovery in August implies that the weather in June and July really did turn the market upside-down.
Indeed, given the anxious noises about UK trading prior to Tuesday’s results, the biggest surprise from Tesco was its bullishness. While many are uncertain about the UK consumer mood, Sir Terry Leahy is sure the worst is over.
He was equally confident that Tesco will remain unscathed by the Competition Commission’s grocery inquiry – the findings of which we should hear soon. As Tesco has exceptional contacts in the corridors of power, the company must be getting pretty good vibes for Leahy to appear so relaxed.
If it can ride out these storms, both literal and metaphorical, with such apparent ease, Tesco must be in frighteningly good form on the home front. Now the focus will be on its US move. There is no guarantee of success, as the many great UK retailers that have failed there have shown . However, if Tesco succeeds, not only will it confirm Sir Terry Leahy as the greatest retailer of his generation, but the company will have changed the face of global retailing.
Green’s grey pound
Bhs-bashing has become a popular sport over the past few years and even Sir Philip Green had to concede last year that the stores and ranges were slipping.
Yet the company’s results this week suggest that, although there is a long way to go, a corner might have been turned. In the stores that have been modernised, performance is much improved.
The population is getting older, but few retailers target mature shoppers. However, if Bhs’ proposition is clear and the stores and product right, this older generation will lead its recovery.
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