Tesco is overhauling the way business is run and reviewing more than 2,000 leadership roles – and the plan suggests leaner times
Supermarkets have done well during the pandemic.
But after they’ve all reluctantly returned their business rate relief – with Tesco leading the way – is that still true?
Investors in Tesco will find out this month when they release their annual results for the year through February. It will be the first big announcement since Ken Murphy, CEO, replaced Dave Lewis last October.
Murphy already seems to be recreating “Drastic Dave,” a nickname earned for its fearsome reputation for cutting costs.
Tesco, which has nearly 3,500 stores, is revising the way business is run and reviewing more than 2,000 managerial roles.
The plan suggests leaner times. However, the latest data from Kantar shows that Tesco is doing fine – sales rose 8.5 percent in the 12 weeks to March 21, better than Sainsbury’s and Asda.
And as non-essential stores closed, larger Tesco stores benefited from higher sales of clothing and other non-food items.
But there can be turbulence. JP Morgan analysts warned this week of the increasing threat from discounters like Lidl and Aldi.
After compiling data on the stores and their catchment areas, they believed that Tesco was at greater risk than others of losing the habit of getting used to cheaper competitors.
This will be on Murphy’s radar. Investors will have more guidance on where Tesco is going and how it plans to get there in the full year results on April 14.