By Peter Campbell
|
Tesco boss Phil Clarke yesterday tested shareholders’ patience by refusing to predict when his £1billion rescue plan â€" designed to stem falling sales at the supermarket giant â€" would begin to work.
Revamp: But investors are still to see the effects of the £1bn turnaround scheme designed to boost sales
The group, which makes 70 per cent of its profits in Britain, reported its third consecutive quarter of falling domestic sales.
In the 13 weeks before May 26, sales in UK stores that have been open for more than a year fell by 1.5 per cent compared with the same period last year, excluding petrol and VAT.
Clarke’s turnaround scheme â€" launched in the wake of the company’s first profits warning in living memory â€" was designed to boost sales.
The plan, which includes revamping stores and employing more staff, was launched seven weeks ago as Tesco posted a 1 per cent drop in annual profits from its UK stores to £2.5billion.
Although it began too recently to gain any traction for yesterday’s set of results, Clarke refused to say when the effects would be felt.
Tesco shares, which have lost a quarter of their value in the last 12 months, were unchanged at 302.8p.
Analyst Richard Hunter at Heagreaves Lansdown said: ‘Obviously the plan will take time, but they haven’t got investors’ patience with them at the moment. I think it will be 18 months before the benefits start to wash.’
So far 4,350 of the expected 8,000 extra staff have begun work, starting two weeks before the Diamond Jubilee.
In the week leading up to the celebrations â€" a period not covered in the results â€" the chain made more than £1billion in sales in what bosses are hailing as the most successful trading week outside of the Christmas period.
On Wednesday rival Sainsbury’s (0.9p lower at 288.7p) is expected to outshine Tesco by reporting strong growth from its convenience chain and online business.
-
Where are my parents? The question from little Nancy when... -
Choose easy! The woman who used TurboTax to falsely claim a... -
Father 'beat man to death after catching him molest his... -
The Turin Shroud is a fake… and it’s one of 40:... -
Horror at 7-Eleven as woman becomes human fireball after... -
No, they’re not photographs: Astonishing acrylic... -
'I'm going to beat this': Good Morning America anchor Robin... -
Tragedy as two girls, both 5, drown in backyard pool while... -
Meet Rupert the Melbourne fat cat who weighs in at 20lb... -
Disabled girl, 16, found starved down to 23 pounds by her... -
'Middle-aged' Prince William enjoys a night out with close... -
Married teacher accused of having sex with four students...
Tidak ada komentar:
Posting Komentar