The retailer’s departing boss did not solve all its problems. But the stable operation he leaves behind was in turmoil in 2014When Dave Lewis took the helm of Tesco five years ago he whisked his 15 most senior managers off to a remote holiday cottage i…Read more
Supermarket giant opened just 10 discount chain stores, with job cuts and sales of £24mWhen Tesco unveiled its discount chain Jack’s a year ago hopes were high it could pose a serious threat to Aldi and Lidl. A year on fewer stores than expected have o…Read more
Supermarket’s chief executive Dave Lewis says consumer markets have remained stableTesco, Britain’s biggest retailer, says shoppers have not changed their behaviour ahead of Brexit and are not stockpiling despite an “uncertain” outlook.The group, which…Read more
Rivals that make a virtue of fresh food counters will be delighted by Dave Lewis’s semi-retreatTesco’s staff must shudder every time the chief executive, Dave Lewis, talks about making the business “simpler”. It usually means a few thousand people are …Read more
All eyes will be on the launch of discount chain Jack’s for clues as to whether the UK’s biggest grocer can operate as well as its sharp German rivals at the cheapest end of the marketThe Tesco founder, Jack Cohen, was an enterprising market trader who…Read more
Supermarket expected to announce rise in sales as questions linger over investigation into 2 Sister Food Group
Tesco’s recovery under Dave Lewis since a series of profit warnings is likely to continue this week. Analysts at Deutsche Bank are expecting the supermarket to announce on Wednesday a rise in like-for-like sales in the second quarter to 2% from 0.9% a year ago, despite the continuing competition from discounters Aldi and Lidl. They are forecasting underlying half-year earnings of £713m, up from £596m.
There is some suggestion that Tesco could start paying a dividend again. Clive Black at Shore Capital said: “Management has guided, through the Booker merger announcement, its intention to recommence dividend payouts in [2017-18]. Our central expectation is that this would more likely than not to be a final payout but we shall watch with interest to see if a token is offered at the interim stage. Such a move would be welcome and express confidence.”Read more
The US airline’s overbooking PR gaffe was an extreme one. But other firms such as Tesco are all-too prone to buzzwords that baffle both staff and customers
United Airlines has been compared to Gerald Ratner after its extraordinary reaction to a passenger on one of its planes being dragged away with a bloodied face by security guards.
Ratner, as a reminder, is responsible for probably the most famous PR gaffe of all time. He was chairman of the high street jewellery firm Ratners when during a speech in 1991 he described one of his products as “total crap”, saying that earrings sold by the business were “cheaper than an M&S prawn sandwich but probably wouldn’t last as long”. After the speech the company nearly collapsed, and he was fired less than two years later.Read more
Supermarket reaches deferred prosecution agreement with Serious Fraud Office and will pay investors £85m in compensation
Tesco is to pay out £235m to settle investigations by the Serious Fraud Office and Financial Conduct Authority into the 2014 accounting scandal that rocked Britain’s biggest retailer.
It will pay a fine of £129m as part of a so-called deferred prosecution agreement (DPA) with the SFO, although this deal requires court approval.Read more
Dave Lewis says he accepts inflation is starting to raise prices but vows to fight unjustified hikes based only on currency fluctuations
The chief executive of Tesco has fired a fresh warning shot at multinational consumer brand owners, such as Marmite’s parent company Unilever, by asking them not to push currency-related price hikes on to British shoppers.
In his first comments since last month’s “Marmitegate” stand-off, Dave Lewis said consumers should not be asked to pay “inflated prices” due to fluctuations in currencies, such as the post-referendum slump in the pound.Read more
All eyes in the City will be on Theresa May this week in Birmingham. Anyone expecting a rowing-back on worker representation is likely to be disappointed
It’s the Conservative party conference this week and City types are agog to hear whether Theresa May will give more details about her pledge to reform capitalism. In July, in what was meant to be one of many campaign speeches for the Tory leadership, May attacked runaway executive pay and said she would put workers and consumers on boards to make companies more accountable to society. Later that day, Andrea Leadsom pulled out of the race and May became prime minister, with her remarks echoing in the ears of fund managers and bosses.
City lobbyists are hoping for vague proposals that they can influence during consultation, but May seems committed to worker representation. Opponents say it will upset the balance of boardrooms because directors are meant to be responsible for the whole company and not for a particular group. They suggest instead giving a board member responsibility for communicating with workers.Read more