Accessories Amazon Asda Christmas Expansion & Franchise Fashion HR News High Street John Lewis London Marks & Spencer Media News Results Retail Retail and Consumer Industry Retail news Sainsbury's Store Tesco UK brand china consumer deal deals and rumours department department stores e-commerce electricals expansion fashion news food grocer group launch luxury morrisons my online online retail people profit property retail property retailer sale sales supermarket waitrose
Tesco reports first profit dip since 1994 Wednesday, 3rd October 2012
Photo courtesy of Tesco
Pre-tax profit for the six months to 25 August hit £1.7 billion, down 11.6 per cent from the same period in 2011.
The dip in profit was largely said to be a result of spending on a £1 billion investment programme to revamp its UK-based stores.
Sainsbury’s also updated its quarterly sales figures today, reporting a 1.9 per cent growth.
Like-for-like sales at Sainsbury’s outpaced those at Tesco’s, where LFLs in the three months to 25 August rose 0.1 per cent.
Like-for-like sales at Sainsbury’s were up 1.9 per cent in the three months to 29 September.
At Tesco, international profits were down 17.1 per cent to £378 million in the half year.
Problems in South Korea, Tesco’s biggest Asian market, are said to have restricted opening hours for bigger retailers. This legislation is rumoured to have cost the business around £100 million in the full year.
John Ibbotson, director of the retail consultancy Retail Vision, commented on the Tesco results: "The £1 billion Tesco has ploughed into fixing its UK operation was supposed to dramatically improve its stores, people and products.
"Certainly its new stores are performing well, but it will take longer for the benefits of improved staff training and store refurbishment to be felt."