Tesco set to post healthy growth figures despite downturn
21 Apr 2009
Tesco chief executive, Sir Terry Leahy, is expected to announce profits in excess of £3 billion last year despite the downturn.
The third largest retailer in the world had reported £2.8 billion in profits last year. Tesco may also reveal that its weekly sales, on average crossed more than £1 billion during the retail industry turmoil that saw hundreds of job losses and even claimed some household names like Woolworths earlier in the year.
Tesco has meanwhile confirmed reports that it planned to double the number of its in-store phone shops by the end of the next March from 50 to 100.
The proposed expansion is expected to be seen as a challenge by rivals like Carphone Warehouse, the UK's biggest supermarket as it opens up more growth avenues.
In March, the company announced expansion of its UK banking operation in Edinburgh. This is expected to see the city become the headquarters for its finance arm.
According to market analysts the demand for Tesco's savings products is understood to have been strong in the wake of the turmoil among high-street banks.
Tesco is also aggressively expanding the reach o its mobile and wi-fi business by opening new 'phone shops' to double the number of shops to 80 by the end of the year.
The supermarket giant's plans will directly challenge Carphone Warehouse and other mobile retail chains.
Tesco also has a presence in 14 countries from Thailand to Turkey and has fast growing operations in China will soon launch in India.
Analysts say that Tesco derives its strength from its presence in growth areas such as telecom, banking and non-food areas in which it is more advanced than other players.
Tesco's closest competitor is nearly half its size and has taken on Tesco in price wars several times Despite its size Tesco is not immune from challenges.
The retailer saw its UK grocery market slip from 30.8 per cent to 30.4 per cent over the 12 weeks to 22 March according to reported figures. Analysts say that aggressive pricing by rivals and growth of German discounter like Aldi and Lidl have given the company more than a run for its money.