This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-22179255
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Tesco profits fall as supermarket pulls out of US | Tesco profits fall as supermarket pulls out of US |
| (35 minutes later) | |
| Tesco's annual profits have fallen for the first time in almost 20 years, as the UK's biggest supermarket confirmed it was pulling out of the US. | Tesco's annual profits have fallen for the first time in almost 20 years, as the UK's biggest supermarket confirmed it was pulling out of the US. |
| Tesco is winding up its US chain of 199 Fresh & Easy shops, which have never made a profit, at a cost of £1.2bn. | Tesco is winding up its US chain of 199 Fresh & Easy shops, which have never made a profit, at a cost of £1.2bn. |
| The company has also announced a one-off UK property write-down of £804m. | The company has also announced a one-off UK property write-down of £804m. |
| Statutory pre-tax profits were down 51% to £1.96bn, but post-tax profits including the cost of the US exit were just £120m, down 95.7%. | Statutory pre-tax profits were down 51% to £1.96bn, but post-tax profits including the cost of the US exit were just £120m, down 95.7%. |
| Tesco said sales at UK stores in the past three months, excluding fuel and VAT sales tax, rose 0.5%, a slowdown from growth of 1.8% in the six weeks to 5 January when the company hailed strong Christmas trading. | |
| The world's third-largest supermarket group, which reported a shock profit warning in January last year, has been restructuring under chief executive Philip Clarke. | The world's third-largest supermarket group, which reported a shock profit warning in January last year, has been restructuring under chief executive Philip Clarke. |
| As well as the US withdrawal, Tesco is exiting Japan and said it would take "a more measured approach to our growth in China". | As well as the US withdrawal, Tesco is exiting Japan and said it would take "a more measured approach to our growth in China". |
| Mr Clarke said: "The announcements made today are natural consequences of the strategic changes we first began over a year ago and which conclude today. With profound and rapid change in the way consumers live their lives, our objective is to be the best multichannel retailer for customers." | Mr Clarke said: "The announcements made today are natural consequences of the strategic changes we first began over a year ago and which conclude today. With profound and rapid change in the way consumers live their lives, our objective is to be the best multichannel retailer for customers." |
| The write-down in the UK property portfolio comes after a review in which Tesco identified more than 100 sites, bought mainly during the property boom more than five years ago, which the company no longer plans to develop. | |
| For the year, total UK sales rose 1.8% to just over £48bn, with UK trading profit falling by 8.3% to £2.27bn. | |
| Tesco said its online grocery division "has had another strong year", with sales growing ahead of the market, by 12.8% to £2.3bn. | |
| The company last reported a fall in annual profits in 1994, since when it has grown into the dominant force on the High Street. | |
| Mr Clarke told the BBC that Tesco's profits had been hit because of the amount of money the company is investing in improving its operations. | |
| Tesco had hired thousands of staff in the UK and re-vamped stores, he said. "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." |