The UK's largest supermarket chain Tesco has reported a third consecutive quarter of falling sales.
And, according to reports, senior figures at Tesco have called this latest slump Tesco's worst performance for more than two decades.
For the three months to 24 May, like-for-like UK sales fell by 3.7 per cent compared to the same period last year.
This latest slice of bad news is served on the back of the recently-announced 6 per cent fall in annual profits for the retailer.
Tesco chief executive, Philip Clarke, said: 'The first quarter has seen a continuation of the challenging consumer trends in the UK, reflecting still subdued levels of spending in addition to the more structural changes taking place across the retail industry.'
Julie Palmer, a partner at business recovery specialists Begbies Traynor,said of the latest saga to engulf the supermarket:“After delivering super profits for many years, Tesco’s management let success go to their head and assumed the good times could continue forever – a major mistake.
“While Aldi and Lidl have carved out a customer base at the value end of the market, Asda and Sainsbury’s in the middle, and Waitrose and M&S at the top, Tesco’s brand identity has lost its way. The group’s overhaul of its shopping experience couldn’t come sooner as customers have been put off by Tesco’s complex multiple buy offers and outdated stores, which are only now being upgraded.”
“What is most worrying is that unlike M&S chief executive Marc Bolland, Philip Clarke doesn’t seem to have a clear turnaround strategy in place. With Tesco’s depleted management lurching from crisis to crisis trying to correct past mistakes on the international front, they continue to under deliver in their core UK grocery business which is by far their most appealing asset.”
Clarke added: 'We are determined to lead in this period of change, building long-term customer loyalty and positioning the business to win in the multichannel era.'
No comments yet