TESCO is expected this week to reveal further dismal trading in the fourth quarter of this year as Britain’s largest supermarket unveils plans for its strategic overhaul of the business.
In its full-year results on Wednesday, the retailer is expected to reveal a one-1.7 per cent fall in UK like-for-like sales in the three months to the end of March, a meagre improvement on the 2.3 per cent decline it saw in the run-up to Christmas.
Analysts have forecast pre-tax profits of £3.62bn-£3.7bn for the year to end of March, compared with £3.54bn the previous year, its lowest rate of profit growth in seven years.
This is a crucial time for chief executive Philip Clarke, who has been under enormous pressure from investors to address problems in the grocer’s home market since it reported in January its first profit warning in 20 years.
In the keenly-awaited strategic review, which will be unveiled alongside the group’s annual results, Clarke is expected to commit around £400m on revamping its existing stores, hiring staff, creating a warmer store layout and improving the quality of products and pricing.
The group has already announced plans to hire up to 23,000 staff this year. It is also rebranding its Tesco Value range to Everyday Value, ditching the stark stripes in favour of softer, more colourful packaging.
Clarke is also expected to detail further changes to its website, including the opening up of the so-called “market place” to third party retailers for the first time.
■ Tesco is expected to invest £400m on revamping stores and hiring more staff.
■ Stores to become warmer and less industrial with better, friendlier service.
■ Shake-up of online offering and expansion of click and collect service.
■ Tesco could detail a new advertising campaign after recently switching agencies.