Comment on Tesco is set to dominate the UK again — here's how

Tesco is set to dominate the UK again — here's how

Thomson Reuters LONDON (Reuters) - Two years after an accounting scandal plunged Tesco into the worst crisis in its 97-year history, the British supermarket looks set to reassert its dominance, given the edge by a transformed relationship with suppliers. Monthly industry data shows Tesco is once again pulling ahead of rivals in Britain under a plan led by boss Dave Lewis, where lower prices and improvements in store have led to more goods being sold to more customers. That in turn has allowed Tesco to agree better deals with suppliers, driving more price cuts and further volume growth - and consequently even better deals with suppliers. It's what former Unilever executive Lewis calls "the virtuous circle" and it has enabled him to target both an increase in sales and profitability. Tesco, whose shares have risen 38 percent this year, is entering the key Christmas weeks with growing sales momentum.

 

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