Tesco's share price has risen 11.2 per cent today, after revealing better than expected results, a detailed turnaround strategy and the name of its new UK and Ireland boss, Halford's Matt Davies, who joins in June.
Chief executive Dave Lewis has gone through a baptism of fire in his first few months at the helm – though commentators generally believe he has “kitchen-sinked” the supermarket, in other words, chucking all the bad news out as early as possible to enable steady growth under his leadership. Whatever the reason, the revelation of a £250m profit overstatement (which then swelled to £263m) has done plenty of damage to Tesco's share price.
But today's surge suggests investors are backing Lewis, both
Today he issued a statement that claimed Tesco was already starting to see green shoots, thanking staff and detailing futher changes that will be made.
Here is that statement in full:
"We are seeing the benefits of listening to our customers. The investments we are making in service, availability and selectively in price are already resulting in a better shopping experience. A broad-based improvement has built gradually through the third quarter, leading to a strong Christmas trading performance.
"I would like to thank all of my colleagues in Tesco. The unique combination of retail expertise and real passion for the customer has been an inspiration to be a part of. In difficult circumstances the team has begun the challenging task of reinvigorating our business. There is more to do but we have taken the first important steps in the right direction.
"We have some very difficult changes to make. I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation. Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results."