Tesco succumbs to retailing slump
Tesco has become the latest (and biggest) casualty of the rout of retailers after the firm reported underlying sales were down 2.3% over the six weeks to January 7.
The poor figure was far worse than expected and represented the supermarket chains worst sales performance in decades.
Mulling over the dire figures Tesco’s chief executive Philip Clarke admitted he was “disappointed” by the results, blaming a “challenging consumer market” and Tesco’s disproportionate reliance on clothing and homewares.
Clarke said: “We delivered a very good Christmas shopping experience for our customers but in a highly promotional market, the volume response to our increased investment into lowering prices (The Big Price Drop) did not offset the deflation it has driven.”
In response Clarke plans to reduce the number of new store openings in a bid to halt the decline.
Tesco has a market share in the UK of over 30%, nearly twice that of its next nearest competitor – Asda.