While Tesco's total UK online sales were up 11%, the retailer's interim results for 2014/15 saw UK like-for-like sales down 4.6%, impacted by strong competition across the grocery market, headwinds from price cuts and fewer untargeted promotions.
The group announced a trading profit of £0.9b – a year-on-year decline which reflects the challenges facing UK business, according to Tesco.
Tesco's recent profit overstatement led to the appointment of a new executive team, which is reviewing all strategic options.
Sir Richard Broadbent, Tesco chairman, comments: “The issues that have come to light over recent weeks are a matter of profound regret. We have acted quickly to clarify the financial performance of the company. A new management team is in place to address the root causes of the mis-statement and to develop and implement the actions that will build the company’s future. I am confident that the new chief executive and chief financial officer will move rapidly and effectively in this respect."
Dave Lewis, chief executive, adds: “Our business is operating in challenging times. Trading conditions are tough and our underlying profitability is under pressure. We do however face these challenges from a position of market strength and I have been heartened by the team’s welcome and their determination to stay focused on doing the very best for our customers. Whilst my review of the whole business continues, three immediate priorities are clear – to recover our competitiveness in the UK, to protect and strengthen our balance sheet and to begin the long journey back to building trust and transparency into our business and brand.”