UK’s biggest retailer sees drop in profits for first time in nearly two decades

Profits for Britain’s biggest retailer dropped for the first time since 1994 on the back of declining UK sales and a £1 billion turnaround plan called “Build a Better Tesco”. Pre-tax profits fell 11.6% to £.17 billion in the first six months of 2012 compared to the same period last year. The turnaround plan is an attempt to compete in a slowing market. Tesco is modernizing 230 stores, expanding product ranges, and has hired 8,000 staff. Chief executive, Philip Clarke said: “We have been hard at work and I am encouraged by our customers’ initial responses to the changes we have made – but there is much more to be done.”