Tesco has announced that its full year trading profit was £3.5bn. This marked a 13% fall on last year which reflects the reinvestments the retailer made in the UK.
For the 52 weeks ending 23 February 2013, Tesco’s global sales grew by 1.3% to £72.4bn. A strong online performance boosted this figure with group sales exceeding £3bn for the first time.
Building a better Tesco
Tesco’s chief executive, Philip 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.
Our plan to 'Build a Better Tesco' is on track and I am pleased with the real progress in the UK. We have already made substantial improvements to our customers' shopping experience, which are starting to be reflected in a better performance.”
Fresh & Easy exit confirmed
Tesco has now confirmed that it is to exit the US market, following a strategic review of Fresh & Easy. The retailer has written down assets and booked an impact to profit before tax of £1.2bn for 2012/13.
Tesco entered the US organically in 2007, creating a new format and brand for the market. It operates nearly 200 stores across California, Arizona and Nevada, employing over 5,000 people. The stores are served by one distribution centre located in Riverside, California.