Tesco chief Matt Davies sees bullish recovery after accounting scandal

Tesco’s UK and Irish stores boss yesterday gave the most bullish assessment of prospects for Britain’s biggest retailer since it was rocked by an accounting scandal in 2014, saying it was winning back customers and “on the cusp of doing something special”.

Speaking at the Retail Week Live industry conference, Matt Davies highlighted the feedback the supermarket group was getting from its more than 3,500 stores in Britain.

“On every key measure of great service, customers are more positive about Tesco than they’ve been for years,” said Mr Davies in his first official speech as chief executive of Tesco’s core UK and Ireland business.

Mr Davies joined Tesco last May, having previously been CEO of bikes to car parts retailer Halfords and Pets at Home.

Sales, profit and asset values at Tesco have been hit by shifts in shopping habits and the rise of German discounters Aldi and Lidl, while an accounting scandal in 2014 left the company on its knees.

However, when Tesco updated on Christmas trading in January it reported its first like-for-like sales growth for four years.

Improving monthly industry data has followed, adding to hopes Tesco may finally be recovering.

Tesco shares have increased by more than a quarter over the last three months. Tesco’s revival plan is based on a focus on lower prices, improved product availability and customer service, along with better relationships with suppliers.

It has also sold assets and cut costs — including thousands of jobs.

There are growing signs 2016 could be a better year for Britain’s big supermarkets.

Reuters