Tesco boss Philip Clarke has claimed the retailer “already looks and acts like a different and better business” despite reporting the first fall in profits for more than 20 years.
Speaking at the latest results announcement, chief executive Clarke also praised the new ad campaign from Wieden + Kennedy, adding the first festive campaign led to a 7% improvement in “key advertising measures”, although he failed to divulge what these actually were.
As widely predicted, the slump has been driven by losses in the US venture, Fresh & Easy. For the year, total UK sales rose 1.8% to just over £48bn, with UK trading profit falling by 8.3% to £2.27bn.
During the period it also sent 32 million “highly personalised” Clubcard mailings, and Tesco maintains that its new investment in multi-channel retailing is starting to pay dividends. It said online grocery division having had “another strong year”; digital sales grew ahead of the market, by 12.8% to £2.3bn.
Clarke said: “I’ve been working for Tesco for nearly 40 years and I can tell you this – it already looks, feels and acts like a different and a better business. [Our marketing] has created standout and differentiation, putting a warmer and more engaging face to the brand that was welcomed by all.”
The company last reported a fall in annual profits in 1994, since when it has grown into the major force, in the UK and in some overseas markets.
Since the £1bn turnaround, Tesco has placed Clubcard at the heart of the business, hired thousands of staff in the UK and revamped stores. Clarke added: “We feel Tesco in the UK can be better for customers. That’s what they want and that’s what we’re beginning to deliver.”
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Tesco boss defiant despite slump http://t.co/aiwhffeRWr