British retailer Tesco has published strong annual results and has also strengthened its leadership position in its home territory. Wholesaler Booker’s acquisition has also opened new doors.
Recovery plan
Tesco’s turnover grew 2.3 % in the past fiscal year, to 51 billion pounds, and profit grew 28 % to 1.6 billion pounds. These excellent results showcase that CEO Dave Lewis’ recovery plan has worked and that the company is back on track. There have now been nine straight months of like-for-like turnover growth for Tesco. Lewis managed to turn the page after an accounting scandal in 2014, turning the company’s focus to price cuts, product range changes, improved service and closer ties to the suppliers.
Tesco is also by far Great Britain’s largest food retailer, with a 27.6 % market share and it has also posted the largest growth out of the “Big Four”. It recently acquired food wholesaler Booker for 4 billion pounds, which will give it access to new markets: restaurants, catering companies and small neighbourhood and convenience stores. Regardless of this all, it still needs to be vigilant, because of the increased competition from hard discounters and online platforms.
