Tesco has announced that its underlying profits have gone up by an impressive 14%. The sales for the supermarket chain have also recorded an increase of 8%, with sales touching a value of £32.9Bn.
The boost in the sales and profit of Tesco has largely come due to lower-taxes and interest charge on Tesco.
However, a major concern for Tesco would be the continued loss of business in both the major markets of the United States and the UK. Though, business in Europe has been encouraging for the Company and Asia has also shown promise for Tesco.
Tesco seems to look like a picture perfect organization when it comes to the headlines. However, underneath, the Company would definitely be worried as the future seemed meek and uncertain regarding profits and sales.
But despite the meek outlook, the consulting director for Verdict, Neil Saunders felt that Tesco’s strategy of expanding internationally, has paid dividends. The expansion, according to him, would further help the Company in the future to earn profits.
Another aspect about the Company could be looked at, by the well received concept of Fresh & Easy, by the Company in the U.S. The new concept introduced by Tesco would further help in driving sales and profits to a positive level.