Tesco trouble: Supermarket’s profits halve as sales slump

Supermarket cancels sale of Dunnhumby, the Clubcard data business

Tesco has recorded a huge fall in profits as bosses battle changes in a highly competitive market.

The supermarket’s profit for the first half of 2015 was £354m, down from £779m over the same period last year – an astonishing fall of 55%.

Sales are still in decline, with sales at stores open for more than year slipping by 1.1%. However, that is a slight improvement from the first quarter’s fall of 1.5%

Tesco chief executive Dave Lewis, who took over in the wake of last year’s accounting scandal, said that the “market remains challenging”.

He said: “In the UK, we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment.

“Our transformation programme in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions.”

The company also announced that it would keep its consumer data business Dunnhumby, which runs the Clubcard scheme, abandoning plans to sell it off.

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Readers' comments (1)

  • Not surprising - I now have to shop elsewhere as Tesco's have reduced their product line range, no doubting using the 80:20 rule. Forgetting its often the 20% part that brings people into the store.

    Worse its the healthier food lines Tesco's are cutting - so now I have to walk further to shop for healthier food - so I get even fitter!
    :)

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