LONDON: Tesco, Britain's biggest supermarket chain, launched a new range of own-label fresh produce, poultry and meat on Monday, stepping up its fightback against German discounters Aldi and Lidl.
The seven new "farm" brands will consist of 76 new lines that will either match the price of competitors or beat them, Tesco said. Where there is duplication, the new products will replace Tesco's existing entry point "Everyday Value" range.
Sales, profit and asset values at Tesco have been hit by shifts in shopping habits and the rise of the discounters.
CEO Dave Lewis, who joined in September 2014, is trying to revive the firm with a focus on lower prices, improved product availability and customer service, along with better relationships with suppliers.
When Tesco updated on Christmas trading in January it reported its first like-for-like sales growth for four years.
Improving monthly industry data has followed, adding to hopes the firm may finally be recovering.
Its shares have climbed 37 percent over the last three months, and last week Tesco's UK boss Matt Davies said the retailer was "on the cusp of doing something special."
The stock was up 1.5 percent at 198 pence at 1236 GMT, valuing the business at 16.2 billion pounds.
Tesco takes on German discounters
Tesco takes on German discounters
Closing Bell: Saudi equities continue 4-day upward trend
RIYADH: Saudi equities closed higher on Wednesday, with the Tadawul All Share Index rising 51.52 points, or 0.47 percent, to finish at 10,945.15.
Trading activity was robust, with 373.9 million shares exchanged and total turnover reaching SR6.81 billion.
The MT30 Index also ended the session in positive territory, advancing 11.93 points, or 0.82 percent, to 1,472.82, while the Nomu Parallel Market Index declined 116.82 points, or 0.49 percent, to 23,551.47, reflecting continued volatility in the parallel market.
The main market saw 90 gainers against 171 decliners, indicating selective buying.
On the upside, Al Kathiri Holding Co. led gainers, closing at SR2.18, up SR0.12, or 5.83 percent. Wafrah for Industry and Development Co. advanced to SR23, gaining SR0.99, or 4.5 percent, while Al Ramz Real Estate Co. rose 4.35 percent to close at SR60.
SABIC Agri-Nutrients Co. added 4.21 percent to SR118.70, and Al Jouf Agricultural Development Co. climbed 4.12 percent to SR45.
Meanwhile, losses were led by Saudi Industrial Export Co., which fell 9.73 percent to SR2.69. United Cooperative Assurance Co. declined 5.08 percent to SR3.74, while Thimar Development Holding Co. dropped 4.54 percent to SR35.30.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. retreated 4.15 percent to SR48.50, and Gulf Union Alahlia Cooperative Insurance Co. slipped 3.96 percent to SR10.44.
On the announcement front, Saudi National Bank announced its intention to issue US dollar-denominated Additional Tier 1 capital notes under its existing international capital programe, with the final size and terms to be determined subject to market conditions and regulatory approvals.
The planned issuance aims to strengthen Tier 1 capital and support the bank’s broader financial and strategic objectives.
The stock closed at SR42.70, gaining SR0.70, or 1.67 percent, reflecting positive investor reaction to the capital management move.
Separately, Almasane Alkobra Mining Co. said its board approved the establishment of a wholly owned simplified joint stock company to provide drilling, exploration and related support services, with a share capital of SR100 million and headquarters in Najran, subject to regulatory approvals.
The new subsidiary aligns with the company’s strategy to enhance operational efficiency and expand its role in the Kingdom’s mining sector.
Shares of Almasane Alkobra Mining closed at SR98.70, up SR0.30, or 0.3 percent, by the end of the session.
