Tesco just posted a £6.37 billion loss for 2014/2015.
“It has been a very difficult year for Tesco. The results we have published today reflect a deterioration in the market and, more significantly, an erosion of our competitiveness over recent years. We have faced into this reality, sought to draw a line under the past and begun to rebuild, and already we are beginning to see early encouraging signs from what we’ve done so far,” said Dave Lewis, CEO of Tesco in a statement.
“Over the last six months we have put customers back at the centre of everything we do. By focusing on the fundamentals of availability, service and targeted price reductions, we have seen a steady increase in footfall, transactions and, most significantly, volumes. More customers are buying more things at Tesco.”
According to Kantar Worldpanel’s latest research, Tesco has 28.4% of Britain’s market share. This is down from the 30.1% slice of the market is had in 2012.
However, Tesco’s sales are growing and it’s stopping the decline in market share.
In the 12 weeks ending March 29, 2015, Tesco’s shares grew 0.3%, while sales at its rivals Asda and Morrisons declined by 1.1% and 0.7% respectively.
HSBC also highlighted this in an analyst note this week that despite a period of massive under-performance, Tesco has been catching up with the industry in terms of sales growth. It’s now no longer losing significant market share: