Tesco, the UK's leading supermarket is having one of its worst performances in the share market.
Its dominance has been on a rapid slip while the low-cost rivals and minor chains take over the territory.
With its market share by February this year showing a dip of 30.
3 per cent compared to last year, shareholders have all the reasons to be worried.
It is currently trading at its lowest share price, only comparable to 2005.
There are several factors that might have contributed to its continuous economically worrying performance.
When the company made public its Christmas statement public, their share price stumbled to 20% by day.
This was shocking, especially coming from one of the most dependable FTSE's big blue chip stocks.
Come January and many of the shareholders were contemplating selling, fearing for more trouble.
Others sold, others bought, while another group decided to hold.
Where did the rains start beating the Tesco.
In the recent past, there is no doubt that the company's performance has been impressive.
The shareholders have had no reason to worry as year after the other; profits have been reported despite the growth rate having slightly taken a back seat.
In its 2010/2011 financial year that ended, Tesco recorded around 8% profits.
When the 2011/2012 mid-year revenue were reported in October 2011, there were still little indication of trouble as the company had reported an impressive 8% growth in revenue.
By the third quarter, all seemed well despite the drop to 5%.
This decrease was only but a tip of the iceberg, the real scare came with Tesco's Christmas trading statement.
On a closer look and analysis of the UK's like-for-like revenue growth, you are exposed to negative figures.
Despite the negative like-to-like, the overall UK revenue grew, courtesy of the 3% growth from the newer stores as well as fresh floor space.
However, the space growth will likely be reduced and potential leave flat sales in the UK over the 2012/2013.
This is because of Tesco's plan to cut on the UK's capital expenditure.
The overall performance of the company in Europe was not impressive.
On the contrary, the US operations realized a 40% revenue growth and an remarkable 20% like-for-like growth.
Even though US only make up a meager 1% of Tesco's overall revenue, analysts see these numbers double after every 2 years.
In ten years, well, US operations alone may be contributing up to a third of the overall Tesco's revenue, that is, if the ambitious growth in US is maintained.
With all factors constant, including the grand US growth, we may see Tesco's revenue increase by 50% in ten years, this is an average annual growth rate of 4%! Many shareholders have been holding Tesco shares because of the dividends, which have been on a steady rise for the last twenty seven years, in line with its earnings.
Is this enough reason for you to hold? What if you buy and hope that the international market will redeem Tesco, and still hope that the 50% growth that is estimated in 10 years stands? This means that you may double your money in 2022! The company has embarked on an ambitious customer care overhaul to redeem its image.
Further to that, what of the "earn while you learn" program? Only time will tell.