I really am not sure what to think about Tesco these days. Lets look at the plus sides first. The prices are ok. The staff are generally good, their delivery drivers especially polite. Much more polite than those of their “orange” competitors for a start. Even in a non english speaking country I was able to find an english speaker working as staff in a branch of Tesco!
Now we have to look at some negatives. It seems to me that you cannot go more than 6-9 months without another scandal hitting Tesco. First it was horsemeat, that was in 2013. Then there was little bit of trouble with their accounts. £250 millionish worth of trouble wasn’t it? If my memory serves me correctly their leadership has chopped and changed quite a bit in that period as well. This leads nicely on to the debacle at the weekend at Tesco bank. The bank arm got hacked by fraudsters and lots of their customers had their bank accounts drained of cash. Some have said more than 20,000 customers are effected. This is a big security breach. A very big one indeed. Someone in IT security at Tesco has clearly taken their foot off the gas, or maybe even gone home early. I will write more at somepoint about the differences between what an IT security department does and what t is supposed to do.
Anyway. Lets get back to Tesco. Where do they go from here? Will we be seeing more scandals every 6-9 months or so? Will we see a spectacular fall from grace that will take away Tesco from their lofty prominence? Or will we see Tesco gain and keep stability and gain an ability to keep away from the scandal spotlight?
Me? I’m not too sure, but I will say this much. Whilst I will still continue to pop in for 4 pints of milk and a loaf of bread as I have always done I will not be adding any Tesco shares to my investment portfolio anytime soon.