THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Tesco makes 'strong progress' as turnaround continues

Tesco has said its turnaround is firmly on track after sales rose for the seventh consecutive quarter and group revenue increased by 3.7% to £28.3 billion in the first half of its financial year.

FOOD & DRINK

Tesco makes 'strong progress' as turnaround continues

Tesco has said its turnaround is firmly on track after sales rose for the seventh consecutive quarter and group revenue increased by 3.7% to £28.3 billion in the first half of its financial year.

In the six months to 26 August, pre-tax profit jumped from £71 million to £562 million as UK like-for-like sales increased by 2.2% after rising by 2.1% in the second quarter. Meanwhile, like-for-like sales in central Europe edged up 0.1% in the six month period although there was a decline of 8.3% in Asia.

The supermarket said the fresh food category had performed particularly well in the UK with volume growth of 1.5% driven by strong ongoing improvements in its offer.

The results mean that Tesco will pay its first dividend in three years.

Dave Lewis, Tesco chief executive, said: "We are 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. All of this is possible because of the focus we have placed on serving shoppers a little better every day. Our offer is more competitive and more customers are shopping at Tesco.”

The company said it remains on track to reduce its costs by £1.5 billion, generate £9 billion of retail cash from operations and improve operating margins to between 3.5% and 4% by 2019/20. Capital expenditure in the current year is now expected to be £1.1 billion and going forward, Tesco expects capital expenditure to remain between £1.1 billion and £1.4 billion per year.

Reporting on its proposed merger with Booker, Tesco said it is currently undergoing an in-depth 'Phase 2' investigation by the Competition and Markets Authority. Provisional findings are expected to be made public by the CMA by the end of this month, ahead of a final report by the end of this year.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process