Incoming Chief Executive
In a trading update, Tesco said trading conditions remain challenging and its ongoing investments in its customer offer - which includes big price cuts - have weighed on its expected performance. It said it was uncertain about how fast the benefits of the investments it is making would flow through in the second half of its financial year.
It said it now expects its trading profit in the current financial year that ends in
That's a significant drop from the
The retailer, one of the biggest in the world, grew quickly during the 1980s and 1990s, overtaking established
Recently, it said it would invest heavily in its customer offering, triggering a price war in the mainstream
"He will be reviewing all aspects of the group in order to improve its competitive position and deliver attractive, sustainable returns for shareholders," Tesco said.
It said it expects to set an interim dividend of
Tesco also said it will further cut capital expenditure, and now expects to spend no more than
"The actions announced today regarding capital expenditure and, in particular, dividends have not been taken lightly. They are considered steps which enable us to retain a strong financial position and strategic optionality," Chairman
"The board's priority is to improve the performance of the group. We have taken prudent and decisive action solely to that end. Our new Chief Executive,
Tesco shares opened down 9.9% at
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