04/06/2014

Tesco Reports Worst Sales Figures In 40 Years

Tesco's chief executive Philip Clarke has admitted the chain's latest drop in sales, which is the third falling quarter in a row, represents the worst he has seen in his 40 years with the group.

According to the supermarket chain, for the three months to 24 May like-for-like UK sales, including VAT and excluding petrol, fell by 3.7%.

The chain also reported in April a 6% fall in their annual profits to £3.3bn.

Discount rivals like Aldi or Lidl are challenging the supermarket chains and Tesco, along with Asda, Morrisons or Sainsbury's have responded by lowering prices on essential items.

Tesco, which said it sales in the essentials grew 28% last quarter, also announced a programme of store revamps which will see 650 of his supermarkets through UK upgraded in the next year.

Chief executive Philip Clark said: "Our accelerated plans are making a real difference for customers and we are more competitive than we have been for many years."

However, he warned the sales were set to continue to suffer.

Tesco's international figures recorded a 2.2% fall in like-for-like sales, including VAT and excluding petrol with 1% fell in like-for-like sales across the supermarket's European operations and 3.2% in Asia.

(CVS)

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