Tesco have reported a return to profit after a rocky few years, bouncing back from the £6.3 billion loss last year.
The profits for the year running up to 27 February have been reported at £162 million, pre-tax for the retail giant. It saw an increase in like-for-like sales of 0.9 per cent in the fourth quarter.
Dave Lewis, chief executive of Tesco, said that the group had “regained competitiveness in the UK… Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.
“What we’ve done is listen to our customers.”
The market is still “challenging and uncertain,” but by focusing on the services that customers want, rather than the competition with the others of the Big Four Stores, Lewis says the retail chain can pull it back.
Still sitting on the biggest portion of the market, Tesco took a heavy blow, as did Asda, Sainsbury’s and Morrisons, when the discount German stores Aldi and Lidl spread across the country and offered much cheaper deals to customers who wanted just that; cheaper receipts at the checkout are a huger winner in the economy as it currently stands.
With millions of young people trapped in their parent’s homes and unable to save up to become first time buyers, every little helps, as Tesco say, and so people flocked to the cheaper stores.
Having learned a tough lesson, the bigger chains have had to adapt their attitude and their prices, and it seems that Tesco have now managed to rebuild some semblance of an earning business.
