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Essay heading: tesco
 
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Issue: Business
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Date added: May 29, 2008
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No of pages / words: 2 / 283
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Morrison is reducing Safeway's prices by up to 6% and Sainsbury is bound to see lower prices as one of the basic changes necessary to drive its recovery. With both Asda and Tesco committed to price leadership, this could result in a step down in industry profitability.
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Although international business is still growing, and is expected to contribute greater amounts to Tesco's profits over the next few years, the company is still highly dependent on the UK market (73.8% of 2003 revenues). While this isn't a major weakness in the short term, any changes in the UK supermarket industry over the next year - for example, like the Morrison's group successfully purchasing the Safeway chain - could alter the balance of UK supermarket power, and affect share...
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