Supermarket cancels sale of Dunnhumby, the Clubcard data business
Tesco has recorded a huge fall in profits as bosses battle changes in a highly competitive market.
The supermarket’s profit for the first half of 2015 was £354m, down from £779m over the same period last year – an astonishing fall of 55%.
Sales are still in decline, with sales at stores open for more than year slipping by 1.1%. However, that is a slight improvement from the first quarter’s fall of 1.5%
Tesco chief executive Dave Lewis, who took over in the wake of last year’s accounting scandal, said that the “market remains challenging”.
He said: “In the UK, we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment.
“Our transformation programme in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions.”
The company also announced that it would keep its consumer data business Dunnhumby, which runs the Clubcard scheme, abandoning plans to sell it off.