There's still no doubt that Tesco is one hell of a success story but in terms of its trading for the last quarter of 2011, Tesco still fell way short of analysts' expectations.
Tesco, Britain's largest retailer this morning reported like-for-like UK sales dropped by 2.3% over the festive period.
The results for the six weeks to 07 January 2012 came in significantly below expectations and disappointed markets with 14% wiped from Tesco's market cap.
It's the biggest one day fall in Tesco stock since 1988: Tesco has lost nearly one quarter of its market cap this year.
Sainsbury and William Morrison both dropped sharply on the news.
Other major retailers have also reported sharp trading declines. Argos down 8.8% in the last quarter; Homebase down 2.6%; Mothercare down 3%; Thorntons down 4.2%; Halfords 4.8%.
Tesco is known for its quality and that is the main reason it's stayed ahead of the pack UK mega-grocers for so long. Even in times of recession - everyone needs food - companies like Tesco are able to maintain market share.
Company results are always a lagging indicator of what's really happening in the market and what's particularly troubling about the timing of the Tesco demise.
Many people were hoping that the UK was heading out of the recessional tunnel into a year of business recovery.
However today's news from Tesco is a sharp reminder that the consumer is spending less or at least looking for a bargain.
Whatever your view on whether we are at the end or still deep in recession one cannot ignore this potent consumer data.
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