Tesco, one of the world’s biggest supermarket companies, met analysts’ expectations for growth in full year earnings announced Wednesday.
The retail giant, long thought of as one of the stalwarts of the FTSE 100, had fallen out of favor after issuing its first ever profit warning in January.
Its underlying profit before tax for 2011 rose 1.6 percent to 3.9 billion pounds ($6.2 billion), but profit in the UK, its biggest market, fell by 1 percent to 2.5 billion pounds. Consensus estimates according to Reuters were 3.88 billion pounds.
Tesco announced that it will invest 1 billion pounds in a revamp of its UK stores in an effort to attract more UK consumers. Richard Brasher stepped down as head of its UK business last month after disappointing sales over Christmas. The chain is also opening fewer hypermarkets and concentrating on its smaller stores.
Laurie McIlwee, chief financial officer of Tesco, told " Squawk Box Europe ": “What’s becoming increasingly difficult is to find prime locations for extremely large stores. The business is going to be more focused on food and better clothing departments.”
He said that fresh food was particularly important because of the “halo effect” of attracting more customers who will then spend more money in other parts of the store.Page 1 of 3 | Next Page