Tesco's Chairman puts his money where his mouth is

Richard Broadbent, Non-executive Chairman of Tesco, has underlined his faith in the company with the purchase of £99,486-worth of shares following the supermarket giant's worst Christmas trading in 20 years.

Broadbent, 58, who has been in the role only since November, purchased 30,149 at 329.98p each.

Tesco yesterday reported that its recent sales performance in its home market fell below expectations, prompting the company to advise full-year trading profit growth will be around the low end of the range of analysts' expectations.

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"Must do better" was the theme of the statement, which reported that sales excluding fuel but including Value Added Tax (VAT) in the six weeks to January 7th were down 1.3% on a like-for-like (LFL) basis versus the previous year.

Broadbent's purchase reflects the firm's plans for 2012/13 to "substantially increase" investment to deliver an even better shopping trip for customers, particularly in the UK.

The company's share price has fallen over 20% in the past year, and 18% in the last month.

Top Director Buys

Tesco (TSCO)

Director name: Sir Richard Broadbent

Amount purchased: 30,149 @ 329.98p

Value: £99,486

Top Director Sells

Marks & Spencer Group (MKS)

Director name: Mr John Dixon

Amount sold: 50,769 @ 315.00p

Value: £159,922