13th Apr 2018
Tesco reported pre-tax profits of £1.3bn for the year to 24 February, up from £145m for the previous year, as UK like-for-like sales rose 2.2%.
Shares rose nearly 6% after the figures were released.
The company is undergoing an overhaul by new boss Dave Lewis and these new figures mark a change from years of bad results for Tesco.
Now in its ninth consecutive quarter of growth, the retailer is facing a troubled market due to pressure from costs.
In the latest UK Customer Satisfaction Index (UKCSI), Tesco scores 80.2, which is higher than the UK all-sector average of 78.1. It is below the retail (food) sector average score of 81.3.
The company said that it won 260,000 more shoppers last year and that sales of fresh food, its own-brand products and clothing had performed well. Tesco has put its success partly down to customers recognising improvements in quality and value.
Tesco’s profits have suffered in recent years, owing partly to an accounting scandal. Dave Lewis was brought in to steady the ship and regain customers’ trust. In a recent blog, Jo Causon, CEO of The Institute of Customer Service, highlights the importance of trust between consumer and organisations.
Causon says: “There is a natural tendency to try to do too many things at once. Yet it’s vital to stay focused and keep your key priorities for the next six months permanently in view. It’s about clarity and communication – taking every opportunity to communicate your goals and objectives through the organisation so that everyone is clear where they are trying to get to.”