London-based supermarket giant Tesco, which is the world's third-largest retailer after US-based Wal-Mart and France's Carrefour, has announced plans to invest £1 billion to boost the fortunes of its operations in the UK.
The decision was taken after the company's profits plunged in the UK, while its annual profits surged due to rising worldwide sales.
In the year to February 25, 2012, Tesco's overall sales rose by 7.4 percent to £72 billion, while its overall profit was up 1.3 percent to £3.8 billion, according to a company statement.
The profit of its UK stores was down by 1 percent to £2.5 billion, whereas profit from its international operations was up 17.7 percent to £1.1 billion.
Tesco Chief Executive Philip Clarke attributed the drop in UK profits to Tesco having failed to pay sufficient attention to its British customers while expanding in the US, Europe and the Far East.
The amount of £1 billion will be spent by the company during the coming year to improve the shopping experience at its UK stores. It would include recruitment of an extra 8,000 staff, and delivering better value for money to customers.
Tesco will be setting up several Express convenience stores and will postpone plans to build large supermarkets.
Tesco has 2,800 stores in the UK and the company has already started rebranding its Value range by changing its name to Everyday Value. The firm has also begun replacing its stark blue and white stripes with new colours.
Fibre2fashion News Desk - India
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