Tesco to Inject £1 billion into UK Stores
It has been announced that Tesco will be investing £1 billion in its UK businesses this year in an attempt to breathe life back to its flagging domestic stores.
The company has seen a decline in its profits from its UK business in recent times and it is thought that this new injection of money will be able to make sure that more staff are recruited and that stores will be more welcoming to customers.
Tesco’s chief executive Philip Clarke said: “Tesco didn’t put enough into the stores and maybe took a little out”. Profits overall in the UK operation dropped by 1% which equates to £3.8 billion in the year ending February.
The company has said that the main reason for the fall in profits is because of the way it has had to competitively price its products and the amount of deals that it has had to put on it products to make sure that customers shopped in the store. However it also said that some of its rivals had also issued some heavily discounted vouchers to entice customers in the same period and this had affect their revenue.
However some experts have said that the reason for the drop in profits was due the way in which Tesco had focused on its expansion in other area of the world such as Asia and the US and for this reason it had taken its eye of the ball back in the UK.