Tesco has said its group trading profit for the financial year ending February 2015 will not exceed £1.4bn, as it takes actions to implement new policies and procedures following its income overstatement.
Bosses are attempting to build stronger long-term relationships with suppliers, as well as operating with greater transparency. A further statement will follow on January 8 outlining measures to improve competitiveness and strengthen the balance sheet.
Tesco chief executive Dave Lewis said: “Whilst the steps we are taking to achieve this are impacting short-term profitability, they are essential to restoring the health of our business. We will not engage in short term actions that compromise in any way our offer for customers.
We still have much to do but are making good progress in developing our plans to improve the long-term positioning of the Group and I will share more of that on the 8th January. Our priorities remain restoring competitiveness in the UK, protecting and strengthening the balance sheet and rebuilding trust and transparency. For now, all the Tesco team is focused on delivering the best Christmas for customers.”