Tesco 'on cusp of something special', says UK boss

LONDON: Tesco's UK boss gave on Wednesday 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 firm was getting from the shop floors of 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 Davies in his first official speech as chief executive of Tesco's core UK and Ireland business.

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 Britain's biggest supermarket group 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 under group CEO Dave Lewis. Tesco shares have increased by more than a quarter over the last three months.

Lewis, who joined in September 2014, is trying to turn Tesco around with a focus on lower prices, improved product availability and customer service, along with better relationships with suppliers. He has also sold assets and cut costs - including thousands of jobs.