One of the most celebrated retail names in Great Britain is Tesco (LSE: TSCO). Millions of British regularly shop in the largest food network in the country. Meanwhile, some investors also have Tesco shares in their shopping baskets.

I see a lot to like about Tesco actions, but at the moment I decided not to buy. Here I will explain my logic. But first let me go through some of the positive aspects that I see in the investment matter.

1. A forceful position on a resistant market

Some markets move through good and bad cycles. Luxury goods are one example – when times become challenging and consumers sharpen the belts, spending thousands of pounds on a purse can leave the list of priorities.

But no matter what is happening in the economy, people have to eat. The demand on the food market is therefore resistant and I see no reason that this changes.

Such a market attracts many companies. But the forceful Tesco position as the leader of the British market means that it is well placed for the benefit of long -term consumer demand.

2. A proven business model

Is it arduous to sell groceries well? It may not seem to be at first glance. However, think about the number of retail retail who have closed their doors for years. Think about brutal price competition on the part of rivals such as Aldi and Lidl.

Also consider the impact on the already gaunt margins of profit of increased costs over the past year due to everything, from increased insurance premiums for product inflation.

Earning money as a supermarket chain is more arduous than you might think. Tesco has been in the industry for decades and successfully moved to an operation covering digital and physical sales. He proved that his business model can work well.

3. Tesco stands out

The company has a number of competitive benefits, which in my opinion will lend a hand distinguish them from rivals.

For example, this is not the only supermarket chain that has a loyalty program. But Tesco Clubcard The program stands out on its scale. About four out of five households in Great Britain have at least one membership in Clubcard.

The program has been operating for decades, and Tesco has developed deep specialist knowledge in the distribution of powerful purchasing insights from collected data. This helped adapt the offering of individual customers by building loyalty in a targeted manner.

Actions look costly to me

With such a vast situation for the company, why should I not buy Tesco shares?

I have already mentioned some challenges that the company faces, from gaunt profits to intensive competition. All companies face risk, so I don’t consider it unusual.

But while investing, I want to buy at a price that in my opinion hits the whole balance between the risk and the potential prize.

Tesco shares have increased by 67% over the past five years. They have recently reached the highest price for over a decade.

At the moment, the price ratio to profit is 19. It seems to me costly for mature business in a highly competitive industry with tiny profit margins.

Tesco shares are not attractive to such a quote.