In a third quarter announcement today Tesco claimed a 2+% rise in group sales (although at like for like they dropped into negative) and also announced the sell off or closure of their US division by April 2013. The new CEO confirmed that in store sales of none food items are holding back group profits while online sales and banking are growing well. Asia was the bright star, but Europe and the UK which represents over 50% of revenue dropped again.
I think it likely that the Christmas season will decide where Tesco goes from here. I personally doubt that supermarkets can sell TVs, phones and electronics when online group Amazon is just dominating prices. This means that most of the UKs big stores face some decisions on what to do with potentially 25% of their store space. Tesco claims that its clothing is selling well, so maybe they should expand that and get rid of the TV's, videos and appliances.
UPDATE As I wrote this I notice Tesco share price has risen nearly 4% based on its decision to sell the US out.
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