Tesco's UK sales resume decline as its recovery strategy is questioned
December 5, 2013, 12:24 am TWN
LONDON--Tesco, the world's third-biggest retailer, fell back to an underlying sales decline in its main British market in its third quarter, raising new questions over its recovery strategy.
The firm, which trails France's Carrefour and United States number one Wal-Mart in annual sales, also reported on Wednesday underlying sales declines in all of its overseas markets.
“Continuing pressures on UK household finances have made the grocery market more challenging for everyone since the summer and our third quarter performance reflects this,” Chief Executive Philip Clarke said. “Overseas, the near-term trading environment also remains tough.”
Tesco, which makes about two thirds of its revenue in Britain, is 20 months into a turnaround plan for its main UK business that has pumped over 1 billion pounds (US$1.64 billion) into store revamps, more staff, new product ranges and pricing initiatives.