Tesco Bounces Back as UK Sales Rise by 2.2%
Tesco has announced a profit of £1.64bn on sales of £57.5bn in the ninth consecutive quarter of growth! But, why have they thrived despite a retail slump?
This acquisition of Booker seems to have paid off for the heavy hitter, as they’ve made huge profits since. The Guardian reported that Tesco “said it made a pretax profit before exceptional items of £1.64bn in the year to 24 February as total group sales rose 2.8% to £57.5bn. Sales at established UK and Irish stores rose 2.4% in the final quarter, slightly ahead of the 2.2% expected by analysts.” Although the Booker deal isn’t the only reason Tesco are thriving. The telegraph reported that “The results cement the turnaround steered by Tesco chief executive Dave Lewis, who has led a massive overhaul of the business, selling off overseas divisions, cutting thousands of management jobs and slashing prices in a bid to lure back customers.”
This is certainly good news for Tesco, considering the likes of Aldi and Lidl have been exceeding expectations and giving the top 4 a run for their money! Lidl’s expansion across the UK has not only created hundreds of jobs but brought Lidl mass profits and brand awareness. But this hasn’t stopped Tesco from hitting back.
Mr Lewis has simplified Tesco’s operations by selling far-flung businesses and properties, doubling down on fresh food and own-label products and cutting costs. The group has made £820m of savings from a £1.5bn target that has resulted in the loss of 6,000 managerial roles.
However, despite Tesco’s recent successes, they still haven’t surpassed their peak back in 2013-2014 when they reported £3bn in underlying pre-tax profits. None the less, they are, once again, proving why they are the biggest retailer in the UK.
Can Tesco continue raking in profits? Or is this just a one-off?
Let us know, we’d love to hear from you! And be sure to check out our blog on water waste here!
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