Tesco staff inline for a bonus
After years of losses, Tesco finally records a profit. The store has returned a profit of £162 million after a loss of billions a year ago which means a bonus for their staff
Increase in sales include an increase of 0.9% in like for like sales in the fourth quarter. There was also a 1.3% increase in sales over the festive holidays. This is the first full quarter growth for the past 3 years. Without finance costs, the stores has made a £1.05 billion.
However, Tesco’s shares decreased by 4% as the store continues to lower prices to try and stay competitive with other stores.
Dave Lewis was quoted in saying “We have made significant progress against the priorities we set out in October 2014.” Then going on to say “We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices.”
Scandals and price wars lead Tesco to have huge losses ranging into the billions in 2013.
The head of the largest super market in Britain, Dave lewis, took the reins 18 months ago and he could be one of the reasons that Tesco have now recorded a profit. He was appointed as chief executive in September of 2014 after the former chief executive and Tesco went separate ways.
By not stocking 18% of the products they had at some point, while introducing alternatives and cutting the prices of thousands of other products they have dropped the price of an average weekly shop by 3%, may have lead to more people shopping at the supermarket chain, which in turn made the store more money.
25% of the office jobs at Tesco have been are now gone and 60 stores that were not doing very well were closed whilst under the new management.
Another way the new boss has made a profit for the company by getting rid of the steaming service Blinkbox which was also making a loss. The chief executive is also looking for buyers for the garden centres and restaurant chains that Tesco also own.