Mark Jones gives comments to Sky News on Tesco capitalising on supply chain advantages with jump in full-year profits
Wednesday 10th April 2019
Tesco has announced a near-30 per cent jump in full-year profits to £1.7billion, buoyed by improved margins and sales growth of 11 per cent. It is another sign of recovery for the UK’s biggest supermarket under chief executive Dave Lewis.
Mark Jones, head of food and drink at Gordons, was one of the first industry experts to react to the news. He said:
“The impressive thing about Tesco’s results is that its market share is about at its lowest in the last 24 months. If you look at Tesco’s profits for the last five years, despite losing around 1% of the market, its profits have grown and the rate of growth has improved.
“One of the key advantages Tesco has, and it has had it for around two decades according to the Competition and Markets Authority, is that as the largest retailer, it pays the lowest price for its groceries. That gives it an advantage and Tesco are capitalising on it.”