Tesco pledge on jobs and investment
SUPERMARKET giant Tesco pledged to continue investing in the North West despite the tough consumer environment.
By the end of 2013 it will have opened eight new stores, extended two more, and created more than 4,000 jobs, director David Potts told TheBusinessDesk.com.
Opening this year will be stores in Blackley, Wrexham, Great Harwood and St Helens, while stores at Horwich and Helsby will be extended.
In 2012/13 stores will open in Widnes, Hattersley, Padiham, Stretford and Salford.
Manchester-born Potts, who leads Tesco’s fast-growing Asia business, was speaking as the UK’s biggest grocer announced a 6.2% rise in first half profits to £1.9bn as sales surged 8.8% to £35.5bn.
Although the dominant player in the UK grocery market, 65% of the group’s selling space is outside these shores.
Asked about a 0.9% fall in like-for-like sales in the UK in the second quarter of this year, Potts said: “It is clear that consumers are feeling the pinch, and that is why we announced last week the investment of £500m in price cuts for the UK.”
While food sales were benefiting from a consumer trend to stay at home more, non-food sales of electronics and clothing – which tend to be more discretionary – are under pressure he said.
“UK and Ireland are both difficult, but in Asia and central Europe we’re still performing strongly,” he added.
Although linked in some media with the vacant chief executive’s role at Manchester City FC – which he has supported for all his life – Potts said he is “very happy at Tesco” and the opportunity to lead the growth of Tesco Asia is both “exciting” and “a privilege”.
