Tesco have released their end of year results which have shown a 6% fall in group trading profit to £3.3 billion. Like for like UK sales have fallen by 1.4%.
Read in further detail about Tesco results here.
With a more positive note, the supermarket reported strong growth of 11% in its UK online grocery sales, while sales at its Tesco Express stores grew 1.1%, further proof that convenience retail is performing well and growing quickly.
The supermarket has also recently cut prices on essential items such as bread, eggs and milk by 24% in an effort to compete with discount stores. But Mr Clarke admitted that it was "impossible" to win against stores likes Lidl and Aldi.
The NFU are concerned at the recent levels of price cuts on staple food items in the retail sector. We are maintaining regular dialogue with Tesco’s to ensure that any price cuts or promotions are not making their way back to the farm gate. We will continue to monitor the situation closely.
With regards to the growing channels in convenience and online shopping, the NFU will continue to encourage the sale of British produce being sold through these mediums and lobby for point of sale and advertising messages to be clear on origin for the consumer.
Key facts for Tesco over the next 3 years:
- Refreshing 650 stores across the UK over three years.
- Working heavily on multi-channel offer (click & collect, online).
- Continue to invest internationally.
- Investing heavily in cutting their prices to rival discounters.