TESCO continues to counfound the credit crunch after reporting record profits and sales – and 26,000 new jobs.
The supermarket giant, headed by Liverpool-born Sir Terry Leahy, has cut prices to help cash-strapped shoppers.
But, while it suffered lower margins from the effects of the recession and recovering rivals, Tesco still posted a 13.4% jump in total revenues of £54.3bn – £1bn a week – and an 8.8% increase in underlying profits of £3.13bn in the year to February 28.
Chief executive Sir Terry Leahy said: “We have delivered a solid sales and profit performance, both in the UK and internationally.”
Overseas sales now account for a third of total revenues and 75% of its new openings will be abroad, creating 15,000 international jobs and another 11,000 in the UK.
Tesco said sales growth slowed in Europe but improved in Asia.
However, Liverpool-born international director for Asia and Europe, Philip Clarke, admitted: “Nowhere has escaped from the recession. For the first time since we have been in China in eight years, there were unemployed people on the streets looking for jobs.”
Planned growth has also been curtailed in America due to the credit crunch.
Mr Clarke said: “Our biggest concentration of stores is in Las Vegas, where there is now a 29% household foreclosure rate. We opened shops to serve neighbourhoods and those houses are empty. But we have long-term expectations the US business will come good.”
Nearer home, Tesco created 200 jobs at its new Liverpool One store in February, and will bring a further 400 at a new Toxteth store, and 3,000 in Kirkby, should its town centre revamp get the Government’s go-ahead.
TRADING GOSSIP: PAGE 16
