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Profits plummet at Tesco

Profits at Britain’s largest supermarket Tesco have fallen by 23.5% in the first half of its financial year.

The multinational retailer saw sales fall 67% across Europe to £55m, and said the environment there had been challenging with waning consumer confidence.

Today the retailer has confirmed a joint venture with China Resource Enterprises (CRE).

The move will see Tesco combine its 134 Chinese stores as well as its Chinese shopping mall business (together “Tesco China”) with the China Resources Vanguard business (“CRV”) of 2,986 stores.

Chief executive Phillip Clarke said: “Despite continuing challenges, we have made further progress on our strategic priorities. We are strengthening our UK business, working to establish multichannel leadership and pursuing disciplined international growth.

“We have continued our focus on becoming the leading multichannel retailer. Our online grocery businesses have continued to perform well across the Group, and we are now offering the service in over 50 cities across nine markets outside the UK.

“The challenging retail environment in Europe has continued to affect the performance and profitability of our businesses there. The investments we have made to improve our offer for customers in the region are already starting to take effect and we expect a stronger second half as a result.”

This was posted in Bdaily's Members' News section by Tom Keighley .