Skip navigation

Gloucestershire Business News

Profits at Tesco rise as it battles back against German invasion

Tesco has seen its profits soar as the supermarket continues to battle back against the invasion of German discounters.

The British retail giant recorded pre-tax profits of £1.3 billion in the year to February 24 - a rise of £145 million - with UK sales rising 2.2 per cent on the previous year.

Tesco has endured years of disappointing results after what analysts say was a period of overexpansion. The firm was also fined following an accounting scandal.

Dave Lewis, whose Wikipedia page describes him as an English businessman as well as chief executive officer of Tesco, said: "This has been another year of strong progress, with the ninth consecutive quarter of growth.

"More people are choosing to shop at Tesco and our brand is stronger, as customers recognise improvements in both quality and value."

Despite the boost Tesco describes trading conditions as "challenging", but Mr Lewis said the business was "firmly on track to deliver" in the medium term.

Tesco has now enjoyed nine consecutive quarters of growth.

It was back in 2014 that the major British employer began to feel the full force of the German invasion in the form of Aldi and Lidl which had begun their UK pincer movement in earnest, taking considerable market share from their rivals.

That year Tesco reported a record statutory pre-tax loss of £6.4bn - a year which also saw it have to digest a £250m penalty for overstating its profits.

According to its figures 2017 saw the business attract an extra 260,000 more shoppers with its own-brand products, clothing and fresh food performing well.

All of which has allowed it to announce its first end-of-year dividend since 2014.

Cost savings in the region of £200 million are also expected, said Mr Lewis, following a deal with wholesaler Booker in March this year.

Punchline says this is good news for the British grocer and retailer after a period when German discounters were stealing its thunder. The tide is turning.

Subscribe to Punchline

Related Articles

Major investment revealed as PM praises Gloucestershire firm Image

Major investment revealed as PM praises Gloucestershire firm

When the Prime Minister committed to invest £300million in the UK aerospace industry at this week’s Farnborough International Airshow she also paid credit to an innovative Gloucester business.

£2.2 million of contracts up for grabs Image

£2.2 million of contracts up for grabs

A decision on how to award contracts worth almost £2.2 million could be made tomorrow as Gloucestershire seeks to improve how it supports carers in the county.

£700k boost for canal side cyclists and walkers Image

£700k boost for canal side cyclists and walkers

A popular canal towpath is set to get a major upgrade and its great news for walkers, cyclists and those who want to stay fit.

A look at what’s Next for former cinema site Image

A look at what’s Next for former cinema site

Midas Construction are busy transforming parts of the former cinema site off St Ann Way, Gloucester.

Copyright 2018 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.