Tesco Reform Will Eventually Improve And Achieve Growth.

The drastic reform of Tesco, Britain's largest retail group, has finally worked.

By the end of February, Tesco's latest quarterly sales grew by 1.1% to 7 billion 510 million pounds (71 billion 80 million yuan), the best performance in 18 months.

The recovery was due to the comprehensive reform measures of Tesco CEO Dave Lewis. Since taking office last September, he has adopted measures such as employing more shop assistants, closing down bad stores, cutting off headquarters and adjusting the structure, changing the way of supplier cooperation, and reducing the price of the most popular 380 brands in the British market (an average decrease of 26%).

In January 8th of this year, Lewis announced the revitalization of its performance reform plan. Although it encouraged investors' confidence, the share price of Tesco rose nearly 15% in the past 27 years, but there was also a lack of confidence in the company. Moodie took the Tesco to Ba1 level (junk level) on the grounds of "these reforms need time to complete".

Now it seems that the reform is more effective than people expected.

Data from the Kantar Worldpanel show that Tesco's market share has shrunk since 2014 and has stabilized at about 28.8%.

In 2014, Tesco suffered the biggest crisis in history. The accounting scandal was investigated by the British Serious Fraud Office, resulting in a sharp drop in share prices and a four profit warning.

Effective

Let Tesco grab customers from Asda, Morrisons and Sainsbury's, and also bring enormous pressure to competitors who are tied up as "the four big supermarket giants in Britain".

In the past 3 months, supermarkets have been cutting prices, especially eggs, vegetables and milk, to attract customers.

According to statistics, the price war between giants has saved consumers 400 million yuan (about 3 billion 720 million yuan) in the last quarter.

Asda, which refused to join the price war and promotional campaign, became the biggest loser in the four giants, while sales fell by 2.1% to 4 billion 570 million yuan (about 28 billion 608 million yuan), and the market share dropped to 17% (17.5% in the same period last year).

Sainsbury's and Morrisons's revenues declined by 0.5% and 0.4% respectively.

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The resurgence of performance has an impact on Asda, and they have a high degree of customer satisfaction.

Fraser McKevitt, retail research director of the consumer index, said.

Andy Clarke, chief executive of Asda, also said that competitors such as Tesco had distributed their vouchers and other promotional tools to their businesses, and criticized the "quantitative easing" as a harmful short-sighted behavior in the end.

Although the stock market has rebounded 25% this year, Tesco

But it dropped 5 cents to 236 cents per share.

However, Bruno Monteyne, an analyst at Bernstein research, said that the views of shareholders are changing. They no longer discuss whether they are over pessimistic about stock prices, but are probing into what extent they will rebound.

Competition from low-cost rivals such as Hardi and Aldi (Lidl) has led to a sharp decline in Tesco sales. Now the growth of Hardi and Liddell has slowed down, too. Lidl

Hardi's concurrent sales increased by only 19.3%, the slowest growth since June 2011, while Liddell's revenue grew by only 13.6% during the same period.

"The development of discount supermarkets is slowing down, which means that the competition between them and the four big supermarket giants has reached a deadlock."

Tim Vallance, UK Retail Director of Jones Lang LaSalle, said.

It seems that the revival of Tesco can retain the status of the British retail boss.