Tesco remains top of the shops for investors

The Share Centre lists Tesco as a long term ‘buy' for investors seeking growth. Nick Raynor, investment advisor at The Share Centre explains why supermarket giant Tesco, remains his favourite play in the sector.

"This morning Tesco reported a 12% increase in pre-tax profit to £1.6bn for the six months ending 31 August 2010.

"It's Tesco's massive overseas exposure that highlights it as a key player for us. Its presence in Asia is of particular interest as sales rose 12% in this part of the world. Plans for continued growth in this market mean that by next year Tesco will have more retail space in China alone, than it does in the rest of its international market.

"Despite slow economic recovery in the UK and a sluggish UK grocery business, the supermarket saw sales grow 4.4%, excluding petrol, as it focused on non-food sales and financial services.

"The supermarket's attractive international earnings, good cash flow and the potential for sustainable growth secures it as top of our shopping list. Investors seeking growth may wish to consider Tesco as a long-term ‘buy'."