Tesco Plc, the U.K.’s largest retailer, fell the most in almost nine months in London trading after the grocer’s two brokerage advisers said a promise of permanently cheaper prices will hurt profitability.
Tesco Plc, the U.K.’s largest retailer, will offer permanently cheaper prices on some items to replace overly complex promotions as it seeks to stem hemorrhaging sales and reverse a declining share of the market.
Tesco Plc’s Turkish unit Tesco Kipa said its parent company started negotiations over the future of the business amid speculation that the parent company may seek a combination with another local operator.
Tesco Plc, the largest U.K. retailer, said a decline in domestic sales resumed in the third quarter as shoppers tightened their purse strings and turned toward both discount grocers and more upscale competitors.
Tesco Plc Chief Executive Officer Philip Clarke, who took direct control of the grocer’s domestic business three months ago, has until the end of the year to convince some investors he can return the U.K. to growth after four quarters of declining sales.
Tesco Plc Chief Executive Officer Philip Clarke said the U.K.’s largest supermarket company will add more own-brands and expand existing ones to revive growth in its domestic business, and will extend its online business.
Tesco Plc Chief Executive Officer- designate Philip Clarke said China will become profitable for the retailer during his tenure as the company invests 2 billion pounds ($3.1 billion) into developing shopping malls.