Once one of the most consistent British companies in terms of earnings growth, Tesco stunned investors in January with its first profit warning in over 20 years.
In April it said it would invest £1bn in its UK business to stem a steady decline in UK market share to Asda, Sainsbury and Morrisons.
In June, Tesco reported a 1.5 per cent fall in first quarter underlying UK sales.
Tesco is not due to update on second quarter trading until 3 October but monthly industry data from market researcher Kantar WorldPanel has shown its UK grocery market share has stabilised, though analysts say the firm has been promoting aggressively.
Britain’s largest retailer, which accounts for about £1 in every £10 spent in UK shops and makes over 70 per cent of its trading profit domestically, said it has recruited more staff, increased training, smartened its stores and invested more in lower prices, better quality products, marketing and its internet, smartphone and “click & collect” services.
“We’re really pleased that we’re starting to see the green roots of progress but it is early days and we’ve got a huge amount still to go after and to do,” said David Hobbs, Tesco’s UK operational strategy and business planning director yesterday.