Tesco set to announce worst results for 16 years
Up until just a few hours ago it appeared as though the supermarkets in the UK were faring better than most on the high street in the battle to survive the UK slowdown. However, there are rumours circulating the City that Tesco will this week announce its worst figures for 16 years reflecting the troubled time on the UK high street.
It will be interesting to see how the stock market responds to these figures because if they are as bad as the rumours suggest and Tesco is suffering then the obvious conclusion would be that every single company on the UK high street is also finding times tougher than many had expected. While there are no concerns about the short, medium and long-term future of Tesco, the same cannot be said about smaller retailers in the UK who will not only be feeling the pinch on the sales side but suffering serious cash flow issues.
The recent VAT reduction was actually exposed as a negative factor for many smaller companies as they have ultimately ended up retaining less of their VAT charge than they have done in the past. This was not something expected as the government had suggested the VAT reduction would help both consumers and retailers in the short, medium and long term.
Share this..
Related stories
Will we ever see the massive financial conglomerates of the past again?
As the UK government and the UK regulators attempt to dismantle the massive financial machines which now operate in the UK, by trimming back on risk-taking and increasing the need for liquidity and asset backing, there are fears we will never see the financial giants of the past ever again. However, it is common knowledge that in every recession and every downturn there are periods of reflection a...
Read MoreEquitable Life saga continues
A report by the UK government has today cast doubt on the level of compensation which could be paid out to those who lost money in the Equitable Life collapse some years ago. A figure in the region of £400 million to £500 million has been suggested as a basis for compensation payments to begin next year although campaigners believe that they are due in excess of 10 times this amount! Equitabl...
Read MoreUK government set to release Lockerbie bomber correspondence
The UK government and its Scottish counterpart are set to release copies of correspondence between the two regarding al-Megrahi as pressure on the UK authorities continue to grow. There is a feeling, and Foreign Secretary Jack Straw did nothing to allay these fears, that the UK government was railroaded into discussing a possible transfer of the Lockerbie bomb from Scotland to Libya some months ag...
Read MoreBright idea to cut household bills
Energy-guzzling, old-fashioned light bulbs will start to disappear from shop shelves early next year, as part of efforts to cut CO2 emissions, the secretary of state for the environment Hilary Benn, has announced.However, this move will have a knock-on effect on household bills too - the energy-saving bulbs that are available instead use far less energy, meaning a lower electricity bill for many h...
Read MoreThree quarters of homeowners to avoid Hips
As the furore over the introduction of Home Information Packs (Hips) continues, property website Rightmove has reassured sellers that only 25 per cent of home owners will be obliged to have a pack.The news comes as the government has decided that only households with four or more bedrooms will have to have a compulsory Hip as standard.According to Rightmove, only 221,954 larger properties on the m...
Read More