The retail giant will invest £1bn in improving stores, customer experience, promotion, pricing strategy. It will continue to develop its own-label ranges after relaunching its Tesco Value products as Everyday Value earlier this month.
Excluding the impact of stores open for 12+ months, like-for-like sales decresed by 0.9% in 12 months. In the second half of Tesco's financial year, sales fell by 1.2%. This led to a 1% fall in profit to £2.5bn.
Group CEO Philip Clarke has now announced that six areas will be focussed on in regards to improving the brand. These include: service and staff; stores and formats; price and value; range and quality; brand and marketing and clicks and bricks.
Clarke stated: “We fully recognise that we need to raise our game in the UK … As we improve the shopping trip for our customers, it will follow that our sales growth and financial performance will improve too.
“These are decisive steps and this cost investment - as we have already announced - will constrain our near-term profitability. … We are adapting our UK capital plans so that we have the right store base for the future, to underpin the returns that create long term value for our shareholders.
“Together these steps are the right things to do both to improve the shopping trip for customers and to secure a return to profitable growth in the UK.”
Click-and-collect services are also planned. 430 will be 'refreshed' over the coming 12 months.
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