Tesco: turnaround “on track”

Tesco, the UK’s biggest food and drink retailer, has boasted its turnaround is on track as it saw group sales rise 3.3% in the first half of the year.

Group sales hit £25.2 billion in the first half, up 3.3%, the seven quarter it has posted growth, with UK like-for-like sales rising 2.2% and transactions also up, by 0.4%.

The retailer also saw group operating profits of around £759 million, a rise of 27.3% across the business, with the UK and Republic of Ireland accounting for £471 million. As a result, it resumed

Chief executive Dave Lewis said the retailer was continuing to make strong progress.

“Sales are up, profits are up, cash generation continues to strengthen and net debt levels are less than half what they were when we started our turnaround three years ago,” he pointed out, saying that this rested on the focus it had placed on serving shoppers better. “Our offer is more competitive and more customers are shopping at Tesco.”

As a result, the retailer announced it was resuming paying a dividend, which reflected confidence that it could build on the strong performance and create long-term, sustainable value for its stakeholders.

Tesco also reported cost savings of around £259 million and net debt fell 25% to £3,260 million, while the health of the brand had also improved, it noted. 

However little was said about the proposed merger with Booker, which is currently being investigated “in depth” by the Competition and Markets Authority.

In the latest KantarWorldpanel data, Tesco continued to see growth, with sales rising 2.7% in the 12 weeks to 10 September 2017, to as it entrenched its resurgence, despite its market share dipping by 0.3 percentage points to 27.8%,

Read more:

Tesco adds new ‘top of the line’ wines to its finest* range

Tesco fined by Serious Fraud Office for past financial practices

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Brand Manager

Hatch Mansfield
Ascot, Berkshire

Southern Regional Account Manager

Speciality Drinks
England, UK

Northern Regional Account Manager

Speciality Drinks
England, UK

Awards Sales Executive – France

Decanter
London, UK

Fine Wine Buyer

FINE+RARE Ltd
London, UK

Sales Executive / Brand Ambassador

Elixir Distillers
London, UK

Brand Development Executive

Elixir Distillers
London, UK

Sales Administrator

Company details: Advised on application
London W1

London Account Manager

Speciality Drinks
London, UK

Sales Administrator Customer Service

Ellis Wines
Hanworth, Middx

Pink Rosé Festival

Cannes,France
7th Feb 2019

Wine Paris

Paris,France
11th Feb 2019

IBWSS UK

London,United Kingdom
11th Mar 2019
Click to view more

The Global Pinot Noir Masters 2019

Deadline : 7th January 2019

The Global Fortified Masters 2018

Deadline : 15th January 2019

Click to view more

Rioja Masters 2018

View Results

The Global Beer Competition

View Results

Click to view more