<p>Despite a faltering first-half and slow progress in domestic markets, Tesco shareholders can look to France’s Carrefour for encouragement.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> The Financial Times is reporting that Tesco profits in Europe are down by two-thirds, the company’s Asian business is moving backwards, and progress in its UK operation is “painfully slow.” However, Tesco’s refurbished stores in the UK are also showing sales uplifts of 3-5%. And by shifting its China business into a joint venture with a local specialist, the company has subsequently solved one of its more pressing international problems. While the overall picture for Tesco is not ideal, Carrefour has also had its fair share of similar problems that the company has already taken steps to solve.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Under a relatively new chief executive, Carrefour slimmed down its international operations and has revamped its domestic stores. As a result, the company shares went up 80% in the 16 months since Georges Plassat became chief executive.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> If Tesco decides to follow in the footsteps of Carrefour, the company will need to take greater control over its UK operation, which accounts for three-quarters of group sales, according to The Financial Times. Operating margins at Carrefour’s French business improved by 120 basis points in the first half of the year, albeit from a low base, while Tesco’s UK business pushed its margins up by just 2 basis points in the same period.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Tesco may still have a chance to recover, but the company must continue to be proactive in its efforts to solve these international and domestic problems.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow as we follow continuing developments on Tesco.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.ft.com/intl/cms/s/3/c8fe1c38-2b51-11e3-bfe2-00144feab7de.html?siteedition=intl#axzz2ggA0osgZ" target="_new"> Financial Times </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
