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20/09/2005
Tesco reports profits rise
Britain’s leading supermarket group, Tesco, has reported an 18.7% rise in profits in their first-half sales figures.
The supermarket giant saw pre-tax profits rise to £908 million for the 24 weeks to August 13, beating average forecasts of £886 million.
The group also reported a rise in sales of 14.1% to £18.8 billion, with same-store sales increasing by 8.2%.
However, while Tesco remained confident of further progress in the second half of 2005, chief executive Terry Leahy warned that the rising cost of oil could have an impact. He said: “The accumulating effects of rising oil-related costs, both on consumer confidence and on our business, are a cause for concern.”
Tesco said that current oil prices could push actual costs as much as £60 million over budget for the full year.
Tesco has managed to avoid the impact of the consumer spending slowdown, which has affected many High Street retailers this year.
The supermarket chain has continued to dominate the UK supermarket industry with a 30.5% share of the market, far ahead of its nearest rival Asda, which has a 16.7% share. Tesco currently receives £1 of every £8 spent by British shoppers.
The group’s non-food ranges have helped contribute to its continuing success. The group saw home entertainment sales increase by 17% in the first half of 2005, while consumer electronics also increased by 20%. Health and beauty products were also boosted by an 11% increase in sales. The success of Tesco’s on-food ranges has helped them to take some of the market share away from specialist retailers, such as Boots and HMV.
Tesco has also announced plans to create more new jobs, following the publication of the latest figures. The firm announced plans to create 7,500 new jobs in the UK.
However, Mr Leahy quashed rumours that Tesco was planning to bid for US group Albertsons. He told the BBC that Tesco had “no interest” in Albertsons as a company.
The publication of the figures has once again raised concerns about Tesco’s share of the supermarket sector in the UK.
Environmental group Friends of the Earth called for an investigation to curb Tesco’s potential “monopoly”, echoing last month’s call for a government investigation into Tesco’s domination of Britain’s supermarket industry by rivals, Asda.
The Forum of Private Business also warned that small firms and suppliers were being affected by Tesco’s continued rising profits.
(KMcA)
The supermarket giant saw pre-tax profits rise to £908 million for the 24 weeks to August 13, beating average forecasts of £886 million.
The group also reported a rise in sales of 14.1% to £18.8 billion, with same-store sales increasing by 8.2%.
However, while Tesco remained confident of further progress in the second half of 2005, chief executive Terry Leahy warned that the rising cost of oil could have an impact. He said: “The accumulating effects of rising oil-related costs, both on consumer confidence and on our business, are a cause for concern.”
Tesco said that current oil prices could push actual costs as much as £60 million over budget for the full year.
Tesco has managed to avoid the impact of the consumer spending slowdown, which has affected many High Street retailers this year.
The supermarket chain has continued to dominate the UK supermarket industry with a 30.5% share of the market, far ahead of its nearest rival Asda, which has a 16.7% share. Tesco currently receives £1 of every £8 spent by British shoppers.
The group’s non-food ranges have helped contribute to its continuing success. The group saw home entertainment sales increase by 17% in the first half of 2005, while consumer electronics also increased by 20%. Health and beauty products were also boosted by an 11% increase in sales. The success of Tesco’s on-food ranges has helped them to take some of the market share away from specialist retailers, such as Boots and HMV.
Tesco has also announced plans to create more new jobs, following the publication of the latest figures. The firm announced plans to create 7,500 new jobs in the UK.
However, Mr Leahy quashed rumours that Tesco was planning to bid for US group Albertsons. He told the BBC that Tesco had “no interest” in Albertsons as a company.
The publication of the figures has once again raised concerns about Tesco’s share of the supermarket sector in the UK.
Environmental group Friends of the Earth called for an investigation to curb Tesco’s potential “monopoly”, echoing last month’s call for a government investigation into Tesco’s domination of Britain’s supermarket industry by rivals, Asda.
The Forum of Private Business also warned that small firms and suppliers were being affected by Tesco’s continued rising profits.
(KMcA)
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Sales at supermarket chain Tesco are said to be falling faster than any of its competitors. The findings, which have been complied by research firm Kantar Worldpanel, found that the troubled business is also losing its market share to discounted chains such as Aldi and Lidl. Waitrose is also usurping some of the market share.
Tesco Losing Out To Competitors
Sales at supermarket chain Tesco are said to be falling faster than any of its competitors. The findings, which have been complied by research firm Kantar Worldpanel, found that the troubled business is also losing its market share to discounted chains such as Aldi and Lidl. Waitrose is also usurping some of the market share.
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Tesco's chief executive Philip Clarke has admitted the chain's latest drop in sales, which is the third falling quarter in a row, represents the worst he has seen in his 40 years with the group. According to the supermarket chain, for the three months to 24 May like-for-like UK sales, including VAT and excluding petrol, fell by 3.7%.
Tesco Reports Worst Sales Figures In 40 Years
Tesco's chief executive Philip Clarke has admitted the chain's latest drop in sales, which is the third falling quarter in a row, represents the worst he has seen in his 40 years with the group. According to the supermarket chain, for the three months to 24 May like-for-like UK sales, including VAT and excluding petrol, fell by 3.7%.
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'Card fraud risk' at Tesco self-scan tills
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'Card fraud risk' at Tesco self-scan tills
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Fifth Tesco Executive Asked To 'Step Aside'
A fifth Tesco executive has been asked to step aside, while the supermarket continues to investigate an alleged £250 million profit forecast overstatement. Kevin Grace, commercial director at Tesco has been asked to step aside, as part of the investigation, according to a report by the Financial Times.
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Parents warned over children's internet use
A third of children, many as young as 11, use blogs and social networking sites at least two or three times a week, yet two-thirds of parents don't know what a blog is, a new report has revealed. The 'Get I.T.
Parents warned over children's internet use
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