SAY NO TO TESCO - OUR PERSISTENCE AS A COMMUNITY WILL WIN OUT

WE ARE NOT SURE WHETHER TESCO ARE GETTING THE MESSAGE - SO WE THINK WE SHOULD GIVE THEM A NUDGE, IN THE REPORT BELOW IT MENTIONS THAT TESCO OWN JUST UNDER 3,000 STORES (ACCORDING TO THE WEB AS AT APRIL 2012, THEY REPORT OWNING 6,351 STORES, MAYBE THEY JUST DIDN'T COVER THE VERY COLD TESCO EXPRESS, TESCO EXTRA & TESCO METRO OUTLETS) THE PICTURE BELOW DOESN'T LOOK RIGHT WITH THAT BACKDROP DOES IT? THEY JUST 'PLONK' THEMSELVES WHERE THEY WANT!

PLEASE READ ON, IF YOU ARE A SHAREHOLDER, DON'T WORRY ABOUT THE 1% DROP, YOUR SHARES ARE STILL WORTH ALMOST £400 EACH!!!

Tesco has signalled the end of the supermarket space race as it slammed the brakes on aggressive UK expansion to focus on a £1bn makeover of its existing outlets and website.
 
The supermarket giant is trying to win back disgruntled shoppers after a shock profit warning in January exposed cracks in its UK business. Its chief executive Philip Clarke said on Wednesday 18th April 2012 that the investment would "put the heart and soul back into Tesco", which has been forced to reassess itself after suffering its first decline in UK profits in more than 20 years. "We fully recognise that we need to raise our game in the UK," said Clarke as the group reported a 1% fall in UK profits to £2.5bn.

With more than 2,700 stores, Tesco's domestic chain pumps out two-thirds of the group's profits. But Clarke said it had taken "a little bit too much away from the shopper" during years of penny-pinching to boost profits.

To win their custom back, Clarke promised more staff on the shop floor as well as "better" products, prices and promotions. The grocer will invest £200m on 8,000 new staff for its large stores and fresh food departments, plus initiatives such as dedicated "fruit and veg teams" clad in green uniforms to help customers.
It also plans to revamp 8,000 products in its standard ranges - 40% of its UK food sales. An initial 430 outlets will be overhauled this year, with the grocer promising new-look stores with a "warmer" atmosphere after shoppers complained that its felt the stores are cold and clinical. 

Clarke said that last year's £500m price cuts initiative, the "Big Price Drop", had resulted in a pickup in sales volumes, but not the "desired improvement in customer price perception". With savvy shoppers jaded by the rhetoric of supermarket price wars, Clarke added that he wanted to "build trust in our pricing".

Tesco's problems come as retailers grapple with structural changes caused by growing numbers of consumers shopping from computers and smartphones. Clarke has slashed Tesco's "physical" opening plans for this year by nearly 40% as it prepares for the "digital era". But it will still open more than 100 stores as it focuses on expanding the Express and Metro chains alongside "dotcom-only" stores, which are used to fulfil internet orders.

The sprawling Extra stores seem to be falling out of favour as shopping habits change, with clothing, DVDs and gadgets increasingly bought online. Instead Tesco is creating an Argos-style Click & Collect business where shoppers can collect goods ordered online. The service is to be rolled out to another 700 stores this year.

Although Tesco has curtailed its expansion, analysts said its might would not be diminished, as its store opening plans remained the biggest in the industry.

Kantar Retail analyst Himanshu Pal said Tesco was "not on its knees, just off the boil". "There has been a clear lack of investment in stores and staff for the last couple of years. The retailer now trails several competitors in terms of fresh food offer, customer service and in-store standards." Shares closed down 2% at 321.05p.

SAY NO TO TESCO IN BOSTON SPA