It comes as the supermarket chain announced its preliminary results for 2011/12 this morning (18 April) for the 52 weeks ending 25 February. These revealed that UK trading profit dropped 1% to £2.5bn, while its international business’ trading profits grew extensively by 17.7% to £1.1bn. Overall, group trading profit increased by 1.3% to £3.8bn.
Group sales, including VAT, came to £7.2bn with a 7.4% growth, and group revenue, excluding VAT, increased by 6.8% to £6.4bn.
Philip Clarke, chief executive of Tesco Group, said: "The last few months have seen us drive a faster pace of change in Tesco, particularly in the UK, reflecting our determined focus on the immediate objectives for the group that were set out last April. This pace of change will accelerate further over the next 12 months. We have already taken important steps to renew and strengthen management in the UK and across the group in key areas, to support this programme of change.
"While our international business is delivering excellent growth, contributing £1.1bn of profit to the group, we fully recognise that we need to raise our game in the UK."
The company’s £1bn investment plan is set to focus on a number of elements, including the recruitment of more than 8,000 new members of staff, refreshing its stores nationwide to give them a ‘warmer’ feel, reducing new property activity by 38% and the continuation of its Price Drop promotional campaign.
It mentioned that, in addition to its recently relaunched Everyday Value range, it would be reviving its standard range, which consists of over 8,000 products and accounts for around 40% of UK food sales. Tesco has implemented a plan to upgrade it range-by-range, as well as adding over 2,000 new lines, through to April 2013.
Clarke added: “Together, these steps are the right things to do both to improve the shopping trip for customers and to secure a return to profitable growth in the UK.”