Tesco's AGM has revealed dissatisfaction felt by employees regarding wages, with a petition calling for a rethink on the subject. The firm's chairman, Richard Broadbent, spoke first at today's meeting, blaming tough market conditions for the company's weak share price performance over the last year. He confessed, however, that the figures must improve. Tesco was handed a petition with 32,000 signatures, calling on the supermarket chain to start paying the Living Wage, of £7.65 per hour, to its staff. One shareholder told the crowd that Phil Clarke's predecessor, Terry Leahy, seriously erred by trying to crack the US market. Tesco defended its turnaround strategy, saying that it's better to sacrifice some sales in the short term if it leads to better long-term prospects. Its CEO, Philip Clarke (pictured) said that he had been "eagerly" awaiting the chance to tell investors about the challenges the company faces. He then listed a series of threats which must be faced, most notably the recession, the internet, and the rise of discount supermarket chains. The company's problems lie in its big stores, Clarke stated, rather than in its web shopping and smaller convenience stores. If online and convenience stores were the only forms of retail in question, they'd be "shooting the lights out." He has tried to calm investor concerns by telling them that Tesco's new store format is delivering results. © 2014 European Supermarket Magazine by Peter Donnelly
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