More buffeting in store for Tesco despite the high-profile endorsement It's probably better to have too much land and space, that it can get rid of, than too little. Similarly it has got margins it can adjust downwards in order to reinvest in the UK portfolio rather than already be on wafer thin returns that would make such action impossible. It also has the country's largest online grocery business to take advantage of the accelerating trend for web based shopping. As far as Buffett is concerned, Tesco may have problems but at least it can fix them, as it has done in the past. However, the competition, notably Waitrose and J Sainsbury, are now better retailers than Tesco and more effective competitors. They have taken on the mantle of innovator from Tesco. Sainsbury's Nectar card is arguably now a more effective loyalty scheme than Tesco's Clubcard and Tesco has seemingly lost that ability to anticipate customer trends which made its stores so effective in Sir Terry Leahy's heyday. Buffett has to be confident that the new management are capable of righting the UK while keeping their international plates spinning. To that end newish chief executive, Philip Clarke, has given each region a dedicated boss to bring focus and avoid distractions - which has obviously got off to a pretty poor start in Tesco's home territory of the UK. Shareholders, including Buffett, have to trust that the new regime can improve the UK performance in the eye of unusually challenging trading conditions. In that sense we are in unchartered territory as they have no track record in this area. Follow Buffett by all means, you will be in good company, but I'm not convinced we've heard the last of Tesco's problems yet. Don't be surprised if the share price falls further before things improve.