Is Tesco on the mend? These new figures show it could be

The troubled supermarket might be finally turning itself around

With financial irregularities, a plummeting share price, falling sales and supplier complaints, Tesco has certainly given us something to write about this past year.

But it looks like the supermarket giant could be on the mend, as sales figures released this morning show sales fell much less than last year.

In the three months to the end of May, UK sales fell 1.3%, compared with a 4% drop in the same period of 2014.

Tesco did better than analysts expected, beating the 1.6%-3% fall forecasted.

The retailer’s shares rose 3.6% this morning, which is good news for investors, but with a share price of 225.25p there’s still a long way to go to get anywhere near its all-time high of 487p back in November 2007.

Ken Odeluga, a senior market analyst at www.cityindex.co.uk said he thought there wasn’t much room for a huge rise any time soon.

“At most, Tesco shares may extend their current rally towards or a little beyond 230p where the key 100 and 200-day moving average are close to converging,” he said.

However, this slower pace of falling sales could be a small sign Tesco is clawing its way back into our affections.

“We are fixing the fundamentals of shopping to win back customers and relying less on short-term couponing,” said chief executive Dave Lewis.

Market share

Earlier this week we also wrote about how Tesco is the only big supermarket to gain market share recently – another sign things could be looking up.

Tesco was the only Big Four supermarket to gain market share in the 12 weeks to 24 May, as the only other supermarkets to gain were much smaller chains Waitrose and Lidl, according to Kantar Worldpanel data.

Grocery market share of the big four

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