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Tesco Set To Announce Second Year Of Falling Profits

Published on Apr 14 2014 9:31 AM in Retail

Tesco Set To Announce Second Year Of Falling Profits

Britain's largest supermarket chain Tesco is set to announce a second successive year of falling profits when it releases its financial figures this coming Wednesday.

Analysts believe that the retailer is on course to report a 6% fall in profit, with sales under pressure from popular discounters such as Aldi and Lidl. 

Many UK media organisations have reported that investors have begun discussing potential successors to Tesco's under-pressure boss Philip Clarke, with former Dixons boss John Browett linked to the post.

Mr Clarke is in the midst of a £1 billion turnaround plan which was launched in the face of last year’s first fall in group profits in nearly 20 years.

Latest industry figures showed that Tesco saw its market share fall to 28.6% in the 12 weeks to March 31, from 29.7% a year earlier.

Last week, it emerged that finance director Laurie McIlwee is to step down after 14 years at Tesco amid reports that he had lost faith in his boss’s strategy to turn around the company’s performance.

Mr McIlwee said he would stay on until a successor is found but warned that Tesco faces a period of “unprecedented change” in the supermarket industry.

© 2014 - European Supermarket Magazine by Enda Dowling

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