Retail News Breaks Archives
Tesco struggles to regain market share
April 11th, 2014
LONDON – With new data this week showing its share of the U.K. market shrinking to a 10-year low of 29%, Tesco PLC is set to report earnings that show its turnaround effort remains a work in progress.
Analysts expect the United Kingdom’s largest supermarket chain to show a 6% slide in annual earnings when it reports financial results next week.
Tesco chief executive officer Philip Clarke has struggled to devise a plan to stem the loss of customers trading up to Waitrose Ltd. or hunting for bargains at discounters such as Aldi Group Co.
Problems began to mount for Tesco in 2012, when it reported its first profit warning in more than two decades.
After Tesco reported weaker-than-expected 2013 holiday sales, Clarke signaled to investors that the retailer was willing to sacrifice profit margins by lowering prices at the chain’s 3,000 U.K. stores to win back shoppers.
Clarke, a 40-year Tesco veteran, also said the company would invest in updating stores, adding staff, introducing products and upgrading its online services.