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Tesco shares fall further as major shareholder sells stake

Shares in Tesco fell a further 1.9% following news that a major shareholder in the UK supermarket giant had cut its stake.

Harris Associates cut its stake in Tesco from more than 3% to about 1.4% over threee months.

In an email, the US fund manager’s chief executive David Herro, hit out at what he described as “unclear management direction and incoherent strategy” and said he wanted to cut Harris’ exposure to Tesco in the wake of a third profit warning issued last week.

The comments from Harris Associates come on the day that Tesco’s new chief executive Dave Lewis begins his job, after his start date was brought forward by the supermarket.

According to industry figures by Kantar Worldpanel released last week, Tesco sales declined 4% in the 12 weeks to August 17 compared to the same period last year and estimated the drop in sales cost Tesco £300 million.

Morrisons has also been suffering in the battle with Aldi and Lidl, with Asda the only member of the Big Four to be growing its share.

Shares in Tesco’s rivals were also hit, with Morrisons down 2.25% and Sainsbury’s 0.28% lower.

This was posted in Bdaily's Members' News section by Clare Burnett .