Tesco Vows to Rein in Prices as Profits Treble

GETTY IMAGES
BBC: Tesco profits more than trebled last year amid rising sales and a fall in Covid-related costs.

The UK's largest supermarket chain reported pre-tax profits of £2.03bn, up from £636m the previous year.

Group sales, excluding fuel, rose by 2.5% to £54.8bn, while in the UK retail sales rose by 2.3% year on year.

However, Tesco warned of "significant uncertainties" and said performance would be affected by the the investment needed to keep prices down.

Chief executive Ken Murphy said: "Clearly, the external environment has become more challenging in recent months.

"Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check - working in close partnership with our suppliers, as well as doing everything we can to reduce our own costs." » | Wednesday, April 13, 2022

Tesco Reports 92pc Fall in Profits

Tesco reports that black hole in profits is larger than expected and confirms chairman Sir Richard Broadbent will stand down

Read the Telegraph article here | Graham Ruddick, Retail Editor | Thursday, October 23, 2014

Tesco Suffers Biggest Fall in Sales for Decades

THE DAILY TELEGRAPH: Britain's biggest retailer Tesco reports 3.7pc fall in sales as discounters Aldi and Lidl grab shoppers

Tesco has reported its largest fall in sales for decades as shoppers turn away from Britain's biggest retailer.

The supermarket chain reported that like-for-like sales fell by 3.7pc in the UK in the three months to May 25.

Philip Clarke, Tesco's chief executive, admitted he had not experienced a larger fall in sales during his 40 years at the retailer.

Tesco is losing sales as the German discounters Aldi and Lidl attract shoppers at a rapid pace.

Mr Clarke said sales had been hit by store refurbishments and "subdued" spending by customers. The fall in sales also reflects the deflationary effect of price cuts as Tesco invests £200m in an attempt to sharpen its pricing. Read on and comment » | Graham Ruddick | Wednesday, June 04, 2014

Tesco AGM: Pay Policy Rejected by More than a Third of Shareholders
THE GUARDIAN: More than 37% of votes were cast against Tesco's remuneration report, with 62.3% in favour

A Tesco Fresh & Easy in Los Angeles. Its boss, Tim Mason, received £7m.
Tesco shareholders gave the company a bloody nose at its annual general meeting today when over a third of votes were cast against its boardroom pay policy.

Britain's biggest supermarket chain suffered the largest shareholder rebellion this year, and the sixth biggest in the last decade, as investors expressed their concern over its remuneration report. More than 37% of votes were cast against Tesco's remuneration report, with 62.3% in favour - according to provisional voting data that did not show how many shareholders had abstained.

There was also a smaller revolt over the pay packages being given to Tesco's top executives, under which they would qualify for a bonus payment equal to an average of the previous two years' bonuses if they are axed or asked to leave. At least 5% of votes were cast against the re-election of US boss Tim Mason, chairman David Reid and corporate and legal affairs director Lucy Neville-Rolfe.

The result also sends a signal to Marks & Spencer ahead of its AGM in two weeks time. Many investors have already decided to vote against the M&S remuneration report in protest at the £15m pay package handed to Marc Bolland, its new chief executive, and other board room bonus payouts. Earlier this week the Association of British Insurers issued a "amber top" alert indicating that investors should think twice before voting in favour of the M&S pay plans. >>> Julia Kollewe, Julia Finch and Emily Seager | Friday, July 02, 2010

Tesco Supports U.K. Alcohol Rules
Tesco is backing a ban on sales of alcohol at prices below cost. Photograph: The Wall Street Journal
THE WALL STREET JOURNAL: LONDON—Britain's biggest supermarket said it supports the U.K. government's plan to ban the sale of alcohol at prices below cost, in response to proposals designed to curb binge drinking and rowdy behavior.

Tesco PLC, the country's biggest retailer by market share, also said it would support any government move to set minimum prices on beer, wine, alcoholic cider and spirits—a measure that has been much-debated in the U.K., but not explicitly proposed by the country's new coalition government.

The U.K. has been struggling with a rise in alcohol consumption that many people contend is fueling public disorder and violence. Health experts say cheap supermarket alcohol, irresponsible barroom promotions and longer pub opening hours have contributed to the problem. Binge-drinking became an issue during the election campaign, with all the parties vowing to crack down. >>> Jeanne Whalen and Paul Sonne | Saturday, May 22, 2010

’Every Little Helps’
MAIL ON SUNDAY: Tony Blair has been in talks with Tesco about helping them open supermarkets in the Middle East - allegedly in return for up to £1million.

It is believed the discussions between the former Prime Minister, now a peace envoy to the region, and the supermarket chain, whose slogan is 'Every little helps', ended after the two sides failed to agree terms.

The disclosure could further damage Mr Blair's hopes of becoming the first President of Europe, as critics will seize on it as evidence that he is as interested in making money as he is in reviving his career as a statesman.

According to one source, Mr Blair's proposed role for Tesco would simply have been to act as a figurehead for their drive to break into the Middle East market.

The company, who have exported their hugely successful formula around the world, wanted Mr Blair to use his international political and diplomatic clout to 'open doors' for them. The Mail on Sunday understands Tesco were 'deeply disappointed' when they were unable to reach agreement with Mr Blair. Tony Blair in talks with Tesco over £1m deal as supermarket eyes Middle East >>> Simon Walters, Nathan Kay and Christopher Leake | Sunday, November 01, 2009

Tony Blair Inc: A Nice Little Earner
THE SUNDAY TIMES: TONY BLAIR is cashing in on his experience as Britain’s longest-serving Labour prime minister by setting up a “commercial partnership” that offers clients political and economic advice.

The business venture, Tony Blair Associates, has been disclosed by the official watchdog that scrutinises paid employment undertaken by former ministers.

The advisory committee on business appointments said in a statement on its website this weekend: “Tony Blair has established Tony Blair Associates which will allow him to provide, in partnership with others, strategic advice on a commercial and pro-bono [free] basis, on political and economic trends and governmental reform.”

The committee said it saw “no reason why he should not set up the firm forthwith”, and disclosed that this had been done this month. It is believed to be the first time a former prime minister has set up a commercial venture with the apparent intention of cashing in on time spent in office. >>> David Leppard and Solomon Hughes | Sunday, February 22, 2009

Cut the Interest Rate, Says Tesco
TIMESONLINE: Tesco has turned up the pressure on the Bank of England to cut interest rates tomorrow in an effort to revive consumer confidence in the run-up to Christmas and the new year.

Dismissing mounting fears about food price inflation as “hype”, Britain’s biggest supermarket said yesterday that it was time for the Bank to send worried shoppers a signal by bringing down the cost of borrowing.

Andrew Higginson, Tesco’s group finance director, said: “The problem is not inflation but consumer sentiment. It’s important that [the Bank of England] starts to show interest rates are going to come down.”

His comments came only a day after the British Retail Consortium had said that like-for-like sales growth across the high street was 1.2 per cent in November, well below the average for the past two years. Tesco demands a cut in interest rates to raise Christmas cheer on the high street >>> By Steve Hawkes

TIMESONLINE:
Rate cut urged to end the gloom By David Smith

Mark Alexander (Hardback)
Mark Alexander (Paperback)

’Fresh & Easy’
Photo courtesy of the BBC
BBC: Tesco, the UK's largest retailer, is planning to open a 1,000-strong chain of discount stores in the US, pitting it against rival retail giant Wal-Mart.

The supermarket has just opened 15 of its Fresh & Easy stores in Las Vegas, Los Angeles, San Diego and Phoenix.

It aims to open a further 200 outlets by 2009 with plans in place to expand the network.

The US retail market is the world's most competitive and has proved a tough nut to crack for many UK retailers.

Ready meals

The company is planning to open a second distribution centre in northern California.

Like the first one, located near Los Angeles, the centre could serve up to 500 stores.

"We want the stores to be no more than two miles apart so no one has to travel more than a mile to get to a Fresh & Easy," said Fresh & Easy Chief Executive Tim Mason. Tesco plans US stores expansion >>>

Mark Alexander