There are gloomy days behind retail giant Tesco Plc and there are dismal days ahead of it as the company saw its sales slump around 1 percent on a like-for-like basis in the quarter ended May 25. But not only UK sales made Tesco dizzy as it had to face facts that its world expansion was undeniably challenged as well. With the ongoing £1 billion turnaround plan, Tesco Plc has to get a grip on itself if it wants to see changes.
Apparently, the days for Fresh & Easy, TESCO’s foray in the US, are numbered; so are the present operations for many of the TESCO’s own outlets across the UK and Europe. While at one end, issues such as a horsemeat scandal and stiff competition by stores such as Aldi are adding to the retailer’s problems, analysts in the retail space industry say that TESCO Plc is grappling with ‘multidimensional problems.’ But that is not it as TESCO Plc has struggled in the overseas market as well.
On 5th of December, Philip Clarke, chief executive officer at Tesco PLC, is expected to announce the company’s withdrawal from the US market. The decision comes as Tesco PLC struggles with its loss-making operations. The third-quarter results, which are also to be announced on the 5th of December, are speculated to be a prelude to the new strategy aimed at boosting Tesco PLC’s operations.
Tesco PLC, the Britain’s largest retailer, has reported a 12 percent fall in half-year pretax profit to $2.7 billion, or £1.7 billion as downturn in Asia and Europe balanced rising sales in the U.K. The Tesco fall in the profit is its first fall in nearly two decades. The U.K. sales have started rising after 18 months.