Are Tesco turning things around?
Turning Tesco around must be like trying to do a U-turn with an iceberg, but the boss of the supermarket Dave Lewis, thinks he's managing it, and has said that the retailer is now out of crisis, after it showed an annual pre-tax profit of £162 million.
Not bad for a company that posted a record loss of £6.33 billion just one year ago.
Tesco also said that they have generated 0.9% rise in the UK in like-for-like sales for the fourth quarter. So why should you care? Well, the supermarket is dropping prices on products and they're vowing to continue doing so, in a bid to stay competitive in a "challenging, deflationary and uncertain market."
Lewis has had to deal with some huge scandals, most infamously, the aftermath of the £326 million accounting scandal.
They've managed to trim a lot of fat from the company, selling off unprofitable arms of Tesco, such as Blinkbox, as well as shaking things up at the supermarket's HQ. 25% of office roles were reduced, and a host of unprofitable shops were closed.
He said: "We feel like we stabilised the business. We don't feel that we're in the crisis that, being candid, we were 16 months ago. More customers are buying more things more often at Tesco. We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices."
Tesco have added 9,000 "customer-facing" roles, as well as lowering prices and introducing new food lines, which seems to be winning consumers back over.
What's next? Well, Tesco are looking to sell their garden centre chain Dobbies and their restaurants, Giraffe. This isn't an ideal scenario for one of the biggest supermarkets in the world, but it looks like things are moving in the right direction.
TOPICS: High Street News