Three former Tesco executives — Carl Rogberg, Christopher Bush and John Scouler — were charged last week with false accounting and fraud by abuse of position after the supermarket overstated its profits by £263m. See The Grocer’s coverage here and a column from editor Adam Leyland on Philip Clarke.
The Financial Times writes that many uncertainties remain after the Serious Fraud Office said on Friday it would charge three former executives over the accounting scandal. “While all three defendants held top roles in the company, it is questionable whether any — even Mr Bush, the UK head — was senior enough to constitute what is known in English law as a “directing mind”.”
In an interview with The Telegraph Tesco chairman John Allan declines to comment on the SFO investigation as he wasn’t at the supermarket during the period – “I wasn’t around so I’m loath to criticise the past”. However, he does discuss challenges of the industry. “One of the challenges we have to deal with as an industry is that there is clearly excess space in food retail in the UK. Tesco and all the other food retailers share that problem and we have to work our way out of that and that will take a number of years.”
The Sunday Telegraph also writes in a separate story that supermarkets aim small in the new space race. “The modest corner shop has become the new battleground for the major supermarkets as a new space race erupts in the convenience store market,” the paper says. Tesco and Sainsbury’s are the only members of the big four to have submitted planning permissions for new shops this year, but almost all the applications are for convenience stores, figures compiled for the paper by Barbour ABI showed.
Morrisons also falls under the spotlight ahead of this week’s half-year results. The Telegraph reports that the retailer is beefing up its relationship with Amazon as it gears up to deliver its best sales performance in four years. The Bradford-based chain is now strengthening its ties with the US online giant by rolling out Amazon lockers across hundreds of stores in the hope of luring in more shoppers. The Sunday Times writes that Morrisons is on track to deliver its third consecutive quarter of rising sales. The grocer is forecast to report a 0.7% increase in like-for-like sales for the first half of the year, following a surprise positive performance over Christmas.
Poundland could expand its clothing range following the £610m takeover by Steinhoff, which runs fashion chain Pep & Co, The Mail on Sunday reports.
Greggs is introducing “healthy” pasties this week, which come in at under 300 calories and contain up to two-thirds less fat and saturated fat (The Guardian).
No comments yet