The UK retail industry continues to take a beating in the markets, with the Tesco share price leading the way. Today, the share price is down by a percentage point. However, it seems likely to continue dropping throughout the session, and hence, it is likely to close lower.
According to recent data, retail sales across the UK are declining at a pace not seen since the worst months of the pandemic, when everything was at a standstill. The decline has partly been contributed to by soaring inflation that has hit household finances.
According to figures compiled by advisory services group KPMG and the British Retail Consortium industry body, retail sales declined for the third consecutive month in June, falling at an annual rate of 1 per cent. The data is not a good look for Tesco, which is likely to see its profits affected by the customer pullback.
The UK economy has also become stagnated amid inflation, raising fears of a looming recession. The UK’s political climate has also compounded the problem. This includes the recent resignation of its Prime Minister, Boris Johnson. The resignation has deepened the uncertainty hanging over the country’s economy, which is already strained by inflation.
Tesco Share Price Prediction
Besides the factors listed above, Tesco’s share price recovery chances are not looking great. For starters, the current bearish trend is likely to continue. This is because the issues that have resulted in the share price sinking are long-term and will take longer to resolve.
Therefore, my Tesco share price prediction expects the price to continue dropping, and there is a high likelihood that we will see the prices drop and trade below the 250p price level in the next few trading sessions. However, my analysis does not rule out the prices dropping and breaking the recent price low of 242p. If that happens, expect the bearish trend to be long-term and possibly last throughout the month.
Tesco Daily Chart
