Tesco brand recovery almost complete as profits jump
UK high street retailer Tesco said its full year profits jumped 28 per cent as it continues on its path to recovery after an accounting scandal damage its brand name five years ago.
Pretax profits a Britain’s biggest supermarket chain came in at £1.67bn, up 28 per cent over the previous year. The company also increased its final dividend to 4.7 pence per share.
Tesco also said it had made good progress on all six of its main strategic drivers, one of which is restoring trust in the company’s brand name.
YouGov Brand Index rating
“Brand health continues to strengthen” Tesco said in its full year statement, adding that quality perception was up 1.9 points and value perception rose 1.3 points according to the YouGov Brand Index measure.
“After four years we have met or are about to meet the vast majority of our turnaround goals. I’m very confident that we will complete the journey in 2019/20”, said Tesco CEO, David Lewis.
I’m delighted with the broad-based improvement across the business. We have restored our competitiveness for customers - including through the introduction of ‘Exclusively at Tesco’ - and rebuilt a sustainable base of profitability.”
Tesco’s turnaround, though, has come at a price. The company has been shedding thousands of jobs and closing stores as it seeks to restore shareholder value and remain competitive in a tough market.
The company is also in the midst of a merger with cash and carry group Booker as it battles upstart discount rivals such as Lidl and Aldi.
Tesco’s shares were up half a per cent at the market open to £2.34.
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