The Tesco chairman, Sir Richard Broadbent, has announced that he will be leaving the company after the extent of the profits black hole was revealed.
It was reported earlier in the summer that Tesco had failed to announce its pre-tax profits correctly, with an estimated £250 million missing.
This figure has now been found to be more in the region of £263 million.
Deloitte, an accountancy firm, has been investigating Tesco in regards to its profit black hole. They have suspended several employees during the investigation, and their report is being passed to the Financial Conduct Authority.
In addition to this, Tesco have also experienced a sharp fall in sales and profits for the first half of this financial year.
Like for like sales fell by 4.6% in the first half of the year for Tesco, Britain’s biggest supermarket, and pre-tax profit slumped down to £112 million, down more than 90% on the same period for the year previous.
On the other side of the market however, Aldi have widened their target market by introducing a range of organic produce to its stores. The German discounter says that it should enable people to save up to 25% on their basket of organic food.
This will help to grow Aldi’s market share even more, while Tesco are left floundering.
