Are Tesco turning things around?
Not only have they made an appearance in the Most Improved Brands list, their sales over the six-week Christmas period actually improved, thanks to more people through the doors and an upturn in clothing sales. Why did people start shopping with Tesco again? One simple answer - their prices for Christmas essentials were 5% lower than they were the previous year.
Tesco's boss, Dave Lewis said: "Our Christmas performance was strong, benefiting from lower prices on an outstanding range of products."
"Our customer service improved materially and our colleagues went the extra mile. Put simply, we put customers at the heart of everything we did and they responded by buying more of what they needed at Tesco."
"International sales have also continued to strengthen, driven once again by improvements across the offer. We continued our strong positive sales momentum in both Europe and Asia, with our Thai business reaching its highest ever market share."
However, selling things at Christmas is much easier than the rest of the year. If you look at Tesco's sales for the third quarter (covering the build up to Christmas, in the thirteen weeks to November 28th), sales actually dropped by 1.5% in the UK.
Tesco might be getting their fingers out, and turning things around, but they're going to have to do more if they want to thwart the threat of Aldi and Lidl, who are taking a number of their customers.