Private Equity Grocery Price War Comes for Tesco: Andrea Felsted

A supermarket price war triggered by private equity-owned Asda has hit its mark: Tesco Plc has lost nearly £3 billion ($3.9 billion) in market value over the past two weeks.

Britain’s biggest retailer left itself vulnerable by failing to go on the offensive when Asda was bought by TDR Capital and the billionaire Issa brothers in 2021, and the privately owned supermarket became distracted by debt. Another budget rival, Morrisons, has also grappled with borrowings and prices that drifted up after its take-private.

It was a golden opportunity that Tesco missed to undercut its rivals more aggressively, I’ve argued hereand here. Now the incumbent risks being squeezed by ...