Britain's Tesco shows fightback plan, progress outshone by rival J Sainsbury
October 4, 2012, 12:19 am TWN
LONDON -- Britain's biggest retailer Tesco showed its fightback plan, which followed a shock profit warning, was starting to make a difference as it stemmed a fall in sales. Its performance was still outshone by rival J Sainsbury.
Tesco, the world's third-largest retailer behind France's Carrefour and U.S. leader Wal-Mart, launched a 1 billion pound (US$1.61 billion) recovery plan in April to reverse a steady decline in UK market share to Wal-Mart's Asda, Sainsbury and Morrisons.
Tesco, which accounts for more than one in every 10 pounds spent in British shops, stunned investors in January with its first profit alert in more than 20 years. It said on Wednesday it had ended 18 months of underlying sales declines with a tiny rise in its second quarter.