Tesco Announces 6% Fall in Group Trading Profits

Tesco, the UK's largest retailer, is facing declining sales due to competition from discount rivals. Despite efforts to reduce prices and improve store offerings, the company has seen a 6% drop in profits. Tesco's brand struggles to represent quality or value, leading customers to shop elsewhere. However, online sales have increased by 11%, and Tesco continues to invest in technology and price cuts. The ongoing supermarket price war presents challenges, but also opportunities for customer savings.

What is one of the main challenges Tesco is facing according to the chief executive?

• Expanding into new markets

• Competing with discount retailers

• Increasing online sales

• Improving store aesthetics

How much has Tesco reduced prices on important product lines?

• 30%

• 24%

• 15%

• 10%

What is one of the reasons for Tesco's declining profits?

• Lack of online presence

• Rising operational costs

• High employee turnover

• Increased competition from premium retailers

Which retailer is mentioned as a premium competitor to Tesco?

• Aldi

• Lidl

• Morrisons

• Waitrose

What strategy has Tesco invested in to boost sales?

• Increasing advertising budget

• Opening new stores

• Early investment in technology

• Hiring more staff