Tesco ‘must invest up to €1.2bn’ to turn around British business

Tesco needs to invest up to £1bn (€1.2bn) to turn around its flagging British business, a process that may take up to three years, according to its fourth-largest shareholder.

In addition to the “significant” sum required, the supermarket chain needs to provide clarity on where the money is being spent, the returns expected and how the grocer measures its effectiveness, said Richard Black, a fund manager at Legal & General in London. The investor owns 3.99% of Tesco’s shares.

“The critical thing for Tesco is to get themselves back on the front foot and I think that could be quite a material investment,” Mr Black said. The retailer should also consider reining in spending on ventures which do not align with its core grocery business, he said.