Tesco pays the price for its optimism in US market
Tesco is hoping for a fresh start today after announcing it will divest its failing US chain and a string of properties in the UK at a loss.
Tesco is hoping for a fresh start today after announcing it will divest its failing US chain and a string of properties in the UK at a loss.
As it reaches a premium price in China supermarkets here are rationing baby milk powder to two cans per customer.
The boss of Tesco has unveiled measures to avoid another horsemeat scandal, including buying more British meat and conducting its own tests.
Tesco has announced three measures designed to ensure that another horsemeat scandal does not happen.
Three products were withdrawn from the supermarket chain after one brand of burger was found to contain as much as 30% horsemeat in DNA tests. The measures are as follows:
Watch Tesco boss Philip Clarke's interview with ITV News here
The boss of Tesco has unveiled measures to avoid another horsemeat scandal, including buying more British meat and conducting its own tests.
Read the full storyTesco are closing the following distribution centres:
In addition Magor, in Monmouthshire, will reduce by approximately 150 staff and Welham Green, in Hertfordshire, by 70.
Tesco said staff would be offered alternative roles at other Tesco sites, including two new distribution centres at Reading and Dagenham where approximately 2,000 jobs will be created.
Tesco has confirmed a number of its distribution centres are set to close. The retailer said employees affected by the closures would be offered jobs at other Tesco sites, including two new distribution centres in Reading and Dagenham.
We’ve been reviewing our distribution network, and have today confirmed plans to close some of our current distribution centres and open new ones that will give our customers a better service and improve working conditions for our colleagues.
Colleagues who are affected will be offered jobs at other Tesco sites, including at the two new distribution sites we have confirmed today that we will be opening, in Reading and Dagenham. Two thousand jobs will be created at those sites.
Police are investigating claims that dozens of Tesco customer Clubcard accounts may have fallen victim to an online fraud. Complaints made by customers include reports that users logging into their Clubcard online accounts have found hundreds of pounds worth of vouchers missing.
Others say they have been unable to log on.
It is thought the number of complaints received by Tesco is less than 100, while a handful of customers have been reimbursed.
In a statement, Tesco said: "We have launched a thorough investigation into a small number of incidents and referred the matter to the police. In the meantime, we'd like to ask any customers who believe they're affected to contact us directly so that we can make sure their accounts are up to date."
Tesco are about to say that their latest horsemeat tests were "all clear."
The supermarket chain are clear on 149 products tested so far.
Tesco chief executive Philip Clarke said the "trust" customers place in the supermarket chain is taken "very seriously" and has vowed to "get to the bottom" of the horsemeat scandal.
Mr Clarke released a video statement on tescoplc.com, saying: "Nothing is more important to Tesco than the trust our customers place in us. And that trust depends on the quality of the products we sell.
"Since we became aware that a small number of Tesco processed meat products have been contaminated with horsemeat, we have been working flat out to get to the bottom of the issue.
"While tests continue, today I want to make a clear promise to customers and to tell you about the rigorous processes we have put in place to prevent this situation happening again.
"Here’s my promise: we will set a new benchmark for the testing of products, to give you confidence that if it isn’t on the label, it isn’t in the product."
Frozen spaghetti and lasagne meals have been stripped from supermarket shelves as fears over contaminated meat products spread.
Tesco and discount chain Aldi revealed they have withdrawn a range of ready meals produced by French food supplier Comigel, including Tesco's Everyday Value Spaghetti Bolognese.
The move follows concern over contamination of products with horsemeat.
A Tesco spokesman said it took the step as a precaution after Findus beef lasagne was removed from sale.
"Following the withdrawal of Findus beef lasagne, which is produced by Comigel, we have decided to withdraw our frozen Everyday Value Spaghetti Bolognese, which is produced at the same site, as a precautionary measure," the Tesco spokesman said.
Former Tesco boss Sir Terry Leahy has described the rise of supermarkets and the closure of small shops across the country as "part of progress".
Sir Terry ran the supermarket giant for more than a decade which saw it become one of the world's biggest retailers, but critics have accused it of driving smaller independent shops out of business and turning town centres into ghost towns.
Appearing on Radio 4's Desert Island Discs, he told host Kirsty Young he had mixed feelings on the issue.
Asked if seeing boarded-up shops made him sad, Sir Terry said: "It does but it is part of progress. People are not made to shop in supermarkets, they choose to shop there.
"High streets - some of them are medieval and the way that we live our lives now is very different, so what you have to do is make sure the benefits do outweigh the costs, and I think that they do."
The Co-operative Group says tests of its own-brand burgers, supplied by Silvercrest, found traces of less than 1% horse DNA in three samples and 17.7% in one sample.
Our decision to withdraw these products at the first opportunity and cease taking further product from this site has proven to be the correct course of action.
Whilst there are no safety issues involved, it is now apparent that some of the withdrawn products have not met the high standards we and our customers expect. We apologise for this.
– Co-operative GroupWe specify that all meat in our frozen burgers should be 100% British but we now strongly believe that some of the meat used to produce these burgers came from outside the UK and was not British in origin, and as a result we have taken the decision to delist Silvercrest as a supplier with immediate effect.
In addition we are tightening our already stringent quality checks to ensure our products meet the high specifications that we set on behalf of our customers.