Tesco cut profit forecast as Click & Collect problems pile-up and shares dive
Tesco, who are officially known as 'the beleaguered supermarket giant' these days, have been having all manner of Click & Collect problems after Black Friday and in the build-up to Christmas and, to make matters worse, they've just announced that they're drastically cutting their profits forecast, because everything has been going wrong for them since their accounting cock-up.
Tesco said that they want to win everyone back by hiring 6,000 new memebers of staff (presumably, they won't be manning the tills as traditional checkouts seem to be vanishing) and offer more price-cuts for customers. This is all because new chief executive Dave Lewis has to do something to overhaul the ailing giant and patch up that horrible £263m black hole in the company accounts.
"Our new approach will underpin stronger long-term relationships with our suppliers, benefiting customers, whilst at the same time ensuring that revenue recognition is transparent and appropriate. We have retrained our entire team and begun the cascade with our suppliers," the company said in a statement.
However, that didn't stop the company's shares from sinking like a rubber brick in the deep-end: another large profit warning saw shares tumbling by more than 10%, with around £1.6 billion slashed from the value.
That's the third profit warning in recent month.
After their rampant growth and ruthless expansion, who would've ever seen all this liquid dung hitting the fan? Absolute madness. Here's hoping for some bargains at Tesco's expense.