Tesco’s turnaround may be gathering pace, but Halloween has seen the ghosts of accounting scandals past return to haunt it.
A group of 125 shareholders have filed a claim for more than £100m in damages, more than two years after the grocer admitted it had overstated profits by £263m.
There is no doubt Tesco has moved on from the financial furore. It has simplified the way it negotiates with suppliers and is being more transparent about its commercial income.
But the threat of a high profile legal claim is the last thing boss Dave Lewis needs hanging over his head as the grocer enters the crucial Christmas trading period.
But before that comes bonfire night – and two fashion retailers have today proven that it’s still possible to produce fireworks despite the challenges facing the sector.
Ahead of Next’s third quarter results later this week, the retailers’ numbers offer light at the end of a tunnel that has looked dark for some time.
Quote of the day
“The misstatement of profits, leading to a dramatic collapse in the Tesco share price, caused substantial damage to many shareholders who manage money for thousands of investors.” – Bentham Europe chief investment officer, Jeremy Marshall.
Today in numbers
3 – The number of concessions The Entertainer plans to open within Debenhams stores in Cyprus.
55,000 – The square footage of Homebase’s new head quarters, after owner Wesfarmers revealed it was moving to a new base in Milton Keynes.
With no formal financial updates scheduled tomorrow, take a look at our interview with boss of the Football Association Martin Glenn, who will be making one of the keynote speeches at Retail Week Live 2017. Glenn, who has held senior roles with a number of FMCG firms, discusses why culture is so important to any business and gives his opinion on which retailers are getting it right.
Luke Tugby, deputy news editor