The errors in the accounting of receipts and disbursements, which already had led to revision of the gains in the first half, weigh 13 billion pounds more than expected.
The president, Richard Broadbent, has announced stepping down, decision that will be effective as soon as the transition at the top is complete.
“The change to the upper floors is a good thing,” said Nik Stanojevic, an analyst at Brewin Dolphin. “Tesco is a company that had a very growth-oriented strategy, but their market share is shrinking, the share of non-discounters is shrinking. Often it takes a change of management in order to go from a growth mentality to a profitability, no-growth mentality.”
The task of reversing the route falls on the shoulders of the new number one Dave Lewis. But the investigation into the “hole” has delayed the drafting of plans to cope with large changes in the market.
“It is undeniable that buyers will continue to avoid these suburban shopping malls and buy online,” says Natalie Berg, an expert in retail. “There are huge structural shifts, and Tesco absolutely needs to reconfigure itself.”
The first semester profits fell by 41%, while in the second quarter, sales in the home market fell by 5.5%.
For the relaunch, all options are on the table, including a capital increase. This feeds the discontent among the major shareholders, that ask for divestment abroad and a new strategy before putting hand on the wallet.