Tesco (LON:TSCO) have seen a “year of signifiant progress”, announcing their first growth in underlying UK sales in over three years on Wednesday.
Tesco released their preliminary results for 2015/16, which showed that new Chief Executive Dave Lewis’ hard work to turn the group around may be beginning to pay off. Group like-for-like sales growth of 1.6 percent in the fourth quarter, with UK transactions rising 2.8 percent. Operating profit stood at £944 million operating profit before exceptional items.
Mr. Lewis, who joined the supermarket in 2014, commented:
“We have made significant progress against the priorities we set out in October 2014. We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices. Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.
Mr. Lewis is trying to revive Tesco with a focus on lower prices, streamlined product ranges, better customer service and new simplified relationships with suppliers. At the end of last year the group sold the Korean brand Homeplus in order to reinvest in its UK business, and yesterday announced the sale of further non-core assets to Chinese retail giant Alibaba.
However, investors have reacted less positively to the news, with Tesco shares trading down 2.84 percent at 190.75 (0819GMT).
13/04/2016
