New Tesco boss wants to offer more services

Phil Clarke, the new boss of Tesco has said that the third biggest retailer in the world needs to come up with new services and products after it fell short of its own profit margin. He also said that that the rages of general merchandise also needed improving and quickly. In order to stay ahead in the tough UK market.

The supermarket giant released the figures on Tuesday for the year ending in February, and their underlying profit rose by 12.3% to £3.8b. This was in line with the expectations of analyst’. But this was mainly due to a strong performance in the Asian market.

Their profits in the UK, however, weren’t so rosy. Even thought nearly £1 of every £7 spent n the UK goes to Tesco, their profit only increased by 3.8%. In the final quarter, sales at stores which had been open for at least 12 months fell by 0.7%, excluding the VAT and fuel sales tax.

Clarke spoke about the British figures, saying that they didn’t achieve the growth they had planned for the year. He added that in the second half of the year, this was only partly due to the economic climate. He concluded by reiterating that they would be pushing hard to increase their rate of innovative new products hitting the shelves and to improve the communication with their customers.

Emerging markets such as Asia are increasingly being relied on by international retailers as consumers in the US and the UK are struggling under the measures their governments are currently taking to reduce their debts. British stores are being hit hard by the present regime, as shoppers are cutting back what they spend on none essential items.