29th November 2016

Tesco plc – A Contrarian Shareholder Value Perspective


In this economic critique of Tesco’s performance in delivering shareholder value, Roger Bell goes back to the mid-1990s to assess how the business has forged its path into the 21st century. Along the way, Roger takes a look at the group’s forays abroad as well as some of the apparent competitive threats closer to home. He also comments on the relative positions of the group’s strategic objectives over the last 10 years against economic performance and value creation and uses 8 questions and statements from the business to analyse the group’s current strategy, under its new CEO, to determine whether a shareholder-centric strategy has been adopted.

Contents within this 26-page report include:

The 8-questions regarding value creation

The Economic Profit calculation

Analysis of Tesco’s Total Shareholder Return (TSR) performance vs peer group

Analysis of Tesco’s strategic direction between 1995-2016

Analysis of application of shareholder value measures by the business

Detailed breakdown of Economic Profit performance across the group by geography and divisional function

Assessment of Tesco’s performance against the 8-questions regarding value creation


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