Tesco under pressure as sales decline in all main markets
Britain's biggest supermarket chain reports a fresh dip in sales in all key markets
Wednesday 04 December 2013
Tesco's turnaround strategy has come under renewed scrutiny after Britain's largest supermarket reported a fresh dip in quarterly sales.
Like-for-like sales in the UK fell 1.5 per cent in the three months to November 23. Sales also fell across all international regions for the second quarter in a row.
However, chief executive Philip Clarke said full-year profits remained in line with expectations.
He also dismissed suggestions from analysts that margins should be cut to 5.2 per cent to improve sales.
Clarke said: “The margin doesn’t have to be 5.2 per cent — it might be 4.8 per cent, it might be 5.6 per cent.
But where it is at the moment is not holding us back. I will not trade long-term health for short-term help. There is no relief in a slowing market.”
Tesco announced a £1 billion investment into its UK stores, which had been suffering at the hands of rapid international expansion, leaving sites dreary and unappealing.
However, Clarke said the upgrades could take up to two years to complete, with 108 large stores out of 500 updated so far.
However, its non-food, or general merchandise division, continues to suffer. Electricals have performed particularly poorly, although sales of its own-brand Hudl tablets topped 300,000.
The rise of discounters Aldi and Lidl is also starting to be felt.
Clarke said: “The traditional Big Four [Tesco, Asda, Sainsbury’s, Morrisons] are feeling the pressure of the discounters but we will succeed because we will become truly multichannel.”
Shares fell 1.1p to 340.6p.
- 1 VMAs 2015: Was Nicki Minaj and Miley Cyrus' awkward acceptance put-down real or staged?
- 2 If you're not already angry about the migrant crisis, here's a history lesson to remind you why you really should be
- 3 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 4 I like Corbyn, but let's face it: we don't need another white man at the head of a political party
- 5 Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition
VMAs 2015: Was Nicki Minaj and Miley Cyrus' awkward acceptance put-down real or staged?
Bank Holiday Monday opening times: Are Tesco, Asda and other supermarkets open today?
Rules on 5p plastic bags likely to lead to arguments at the check-out
The nine most warmongering countries in the world revealed
VMAs 2015: Kanye West runs for president, Nicki Minaj calls out Miley Cyrus and the list of winners in full
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...