there is a level of madness within the capitalist system. it is part of its nature. it is this madness that socialists hate. what is even madder is the business media.
a sunday evening in my favourite coffee shop, a cup of joe and the sunday times.
a report that tesco's is abot to announce its worst christmas in decades.
really? no shit.
before we forget let's just remember that we are in the midst of a financial crisis. unemployment is rising. the cost of living is rising. so what does that mean?
well even i can see that means there is less money to go around. less money means less stuff being bought. simple really, unless of course you happen to be a financial journalist in which case the lack of spending seems to be a mystery and any decline in spending is seen as a major surprise.
tesco's market share has dropped from 29.3% ro 28.9% in the uk.
tesco's worldwide made a record profit of £3.8 billion last year and looks set to overtake that this year.
overall tesco isn't in a poor state. yet still the analysts carp.
why do they carp? because they feel tesco may not be to expand in the uk much more. no shit. i have three tesco metro stores within a 5 minute walk of where i live, so the only way they expand around here is to start having a display in people's houses.
clive black an analyst of share capital says "we expect tesco to be the industry laggard". i am not a betting man but i reckon tesco will still be top dog.
(interestingly while looking for some information for this blog i came across a piece in the guardian, so hardly secret, that reports that tesco had just reported its 4th quarter of declining sales so the current story of the worst christmas seems even more of a non-story).