Tesco share price has continued to struggle in the markets, partly because it is among the most affected industries in the current economic climate. Yesterday, the share price failed to have any significant move, closing the markets with a gain of only 0.42.
Why Tesco Shares Will Continue to Struggle
The recent increase in the cost of living has seen the UK’s record retail sales decline at a pace not seen since the peak of the pandemic. In addition, the latest inflation data of 9.1 per cent has also contributed to the current Tesco share drop as consumers continue to cut their purchases.
The entrance of Amazon.com Inc. into the UK retail industry is also becoming a problem for Britain’s largest supermarket chain. In an aggressive push to compete with Tesco, Amazon has indicated they will be matching prices on hundreds of everyday items to those offered by their rival Tesco.
The decision to lower their prices will see the Amazon UK branch continue to be competitive in the UK, with a high likelihood of edging Tesco in the long run. Investors have started looking keenly at what is happening in the markets, including the current Amazon and Tesco war of dominance in the UK’s retail industry. The competition comes amidst customer complaints about the latest checkout change that leaves customers with a huge bill.
According to reports, Tesco increased its plastic bag price from 20p to 30p, which left many outraged about the change. The price change may be small, but with worthy competitors already challenging the company, and the country being in the middle of a surging cost of living, these small changes may impact its share price in the markets.
Tesco Share Price Prediction
Fundamentals will drive Tesco’s share price for the next few trading sessions. With the latest Amazon decision to subsidize prices in order to become competitive, the rising cost of living and the customers’ dissatisfaction with the company, there is a high likelihood that we will see Tesco share prices continue to drop.
My Tesco share price analysis expects its prices to drop below the 242 demand level. Trading below the 230p price level is also not unlikely based on the current price action. However, my analysis will be invalidated should the prices move past the 264p supply level, which will indicate a possible bull move.
Tesco Daily Chart
