Tesco may be a stock to add to your shopping list if you want more exposure to UK shares

The shares are trading at 330.5p, up 12.8 per cent from the start of the year despite this week’s stock market fall.

Yet the price is still only 5 percent above the level of a decade ago, when the supermarket chain faced an accounting crisis that threatened its future.

The subsequent somewhat lackluster share performance belies the progress the £21.9bn FTSE 100 company has made since the scandal. There has been a turnaround, first under David Lewis and then under his successor Ken Murphy.

Will Tesco continue to grow?

This ‘leading grocer of the British aisles’, as Richard Hunter of broker Interactive Investor calls it, is now luring customers away from rivals faster than at any time in the past two years, despite competition from fast-growing German discounters Aldi and Lidl.

What is the market share?

The company tops the supermarket league with a 27.7 percent share of the UK grocery sector. Sainsbury’s is second with a 15.3 percent share. Asda is third with 12.7 percent.

How important is Clubcard?

This loyalty scheme is integral to Tesco’s appeal. Food price inflation has fallen, which should mean shoppers are less fixated on getting a bargain. But 22 million UK households with a Clubcard still benefit from in-store and online discounts that are available only to them.

What’s the next big step?

An attempt to seduce the affluent foodie clientele of Marks & Spencer and Waitrose, who dine in restaurants but at home. Tesco aims to increase sales of its Finest range from £2bn a year to £3bn by upgrading its upmarket Finest range.

Are there any other initiatives?

Murphy wants urgent action to be taken against the rising tide of shoplifting, with theft from Tesco and Sainsbury’s accounting for 40 percent of all cases.

Millions have been spent on body cameras and protective screens for staff and security to deter offenders. But Murphy remains furious about attacks on his staff and hopes the new Crime and Policing Bill will bring tougher measures to tackle the crime wave.

Should I buy the shares?

This may be a stock to add to your shopping list if you want more exposure to UK equities.

Tesco has been buying back its own shares and plans to spend another £1bn on this strategy over the next year. Share buybacks are supposed to boost a company’s share price because they reduce the total number of shares in issue.

Meanwhile, the majority of analysts rate Tesco a ‘buy’ with an average price target of 338p. There is also the lure of the 3.78 per cent dividend yield.