Dave Lewis’ turnaround plan for Tesco continues to make progress with a second quarter of like-for-like sales improvement.
Of course price reductions have played an important part in bringing shoppers back, but there is a lot more to Tesco’s (initial) recovery. Better availability, rising shop keeping standards and shorter queues at checkouts have helped to improve the customer experience. Its continuing divestment of businesses to focus on the core makes good sense. Also the retailer’s marketing has done much to reintroduce a human, light-hearted side of the business that has been missing for too long.
Of crucial importance for Tesco, as one of the biggest employers in the UK, its colleagues seem to have regained the spring in their step. In the end it will be colleagues’ belief in the business and their motivation that will determine whether this start of a recovery gains real momentum.