LONDON (Reuters) – Tesco will slash costs and sell assets to fund lower prices and mend its finances, Britain’s biggest retailer said on Thursday, as its new boss set out his plan to fight back from years of market share losses and an accounting scandal.
Dave Lewis, poached from Unilever to rescue Tesco from the biggest crisis in its 96-year history, said on Thursday he would halve capital spending, scrap the dividend, consider the sale of the Dunnhumby data gathering business, consolidate head office locations and shut the final salary pension scheme to save cash.
LONDON (Reuters) – Tesco (TSCO.L: Quote, Profile, Research, Stock Buzz) on Thursday turned to Halfords (HFD.L: Quote, Profile, Research, Stock Buzz) CEO Matt Davies as the surprise choice to fix its UK supermarket business, won over by his ability to improve customer service and employee morale.
News of his appointment sent shares in Halfords, where the 43-year-old revitalized a tired car parts to bicycle firm in just over two years, tumbling 8 percent.
LONDON, Jan 8 (Reuters) – Britain’s biggest supermarket
group Tesco plans to cut hundreds of millions of pounds
of costs and sell assets to fund lower prices in response to the
biggest crisis in its 95-year-history.
Seeking to recover from four profit warnings and an
accounting scandal, new Tesco boss Dave Lewis unveiled his
strategy in a statement which also showed a marked improvement
in trading over the key Christmas period.
LONDON, Jan 7 (Reuters) – Shares in British online fashion
retailer Boohoo.com plunged by almost half on Wednesday
after fierce discounts across the industry hit sales and forced
it to slash full-year profit forecasts.
The company, which listed on the stock market in March,
blamed price cuts by high street rivals looking to shift jumpers
and coats following a warm autumn season for slowing demand in
the run-up to Christmas.
LONDON, Dec 22 (Reuters) – When Phil Clarke was sacked as
Tesco’s CEO, senior executives hoped his 0700 strategy
meetings would go with him. They did – new boss Dave Lewis
starts his at 0630.
Parachuted in from Unilever in September, Lewis
soon faced the task of making the shock announcement that a 250
million pound ($391 million) hole had been found in Tesco’s
profits, in an accounting scandal that led to the departure of
several senior executives.
LONDON, Dec 19 (Reuters) – “If you don’t want to play, we’ll
come to your country and smash you to bits,” Mike Ashley, the
billionaire founder of British retailer Sports Direct
said earlier this year.
That’s not the language you’d expect from a business leader
laying out plans to expand across Europe.
LONDON, Dec 18 (Reuters) – InterContinental Hotels Group
will open up to three of its new Hualuxe hotels in China
in 2015, the first of a Chinese-specific brand it hopes to
eventually roll out globally.
IHG, one of the world’s largest hoteliers with brands such
as Holiday Inn, Crowne Plaza and InterContinental, said the
first Hualuxe hotel will open within weeks and has identified
over 100 Chinese cities for sites in the next 15-20 years.
LONDON (Reuters) – Destined to form models of the Burj Khalifa and Tokyo Tower, 90 million toy bricks will be used in new Legoland Parks in Dubai, Japan and Korea by 2017, building blocks in British operator Merlin’s (MERL.L: Quote, Profile, Research, Stock Buzz) expanding empire.
The theme parks, which each house 30 million Lego bricks and offer youngsters rides and shows, make up 30 percent of Merlin’s 1.2 billion pound ($1.9 billion) revenue and are a big part of its punchy expansion plans for North America and Asia.
LONDON (Reuters) – Sports Direct, Britain’s biggest sporting goods retailer, said it would not rule out taking further stakes in rivals and that potential acquisitions in Europe were constantly being assessed as part of its expansion plans.
The group, majority owned by founder and Newcastle United soccer club owner Mike Ashley, has already taken surprise positions this year in department store group Debenhams, online retailer MySale and Britain’s biggest retailer Tesco, all firms it now has retail deals with.
LONDON, Dec 9 (Reuters) – British pub group Wetherspoon
said it would no longer sell Heineken drinks
at any of its 926 pubs after a disagreement with the Dutch
brewer over pricing in Ireland.
Wetherspoon, whose cheap drink and food offers have proved
popular in the UK, has been selling pints of Heineken lager and
Murphy’s stout at prices around 40 percent below the competition
at its first Irish pub in Blackrock, Dublin.