The news in this morning’s papers will be somewhat overshadowed by the outcome of yesterday’s EU referendum as Britain votes to leave the Union.
Tesco quarter one results dominate the business pages, with the supermarket attributing its second straight quarter of sales growth in part to its fresh farm food range (The Independent). The Mail writes that the recovery at Tesco has legs as the retailer revealed two quarters of sales growth for first time in five years. Tesco UK like-for-like sales increased by 0.3% in the first quarter and CEO Dave Lewis also agreed the sale of Harris + Hoole coffee chain to Caffe Nero. “Revived Tesco ditches the morning coffee as sales grow,” The Times writes. The disposal is the fourth in recent weeks as Tesco offloads businesses acquired during its “ill-fated expansion” a few years ago to focus on reviving its core business.
Allister Heath in The Telegraph opines that the Tesco “zombie has lurched back to life”. “We won’t know for sure for another couple of quarters whether Tesco’s rebirth is truly sustainable, but the signs are looking better than they have for years,” he adds. Tesco chairman John Allan warned shareholders that it may take two or three years for the supermarket’s recovery to feed into its share price (The Telegraph).
The Financial Times says the Harris + Hoole sale and other sell-offs reverses a decade of expansion to focus on the UK supermarket business. The paper’s Lombard column adds that “Tesco’s lion king Lewis kills Phil’s darlings”. “Mr Lewis may still be bested by the fickleness of UK consumers. But at least he would fail with his grocer’s boots on, rather than brewing frothy coffee. A lion kills the offspring of the old alpha male when it takes over a pride. Bosses should be as ruthless with the vanity projects of predecessors.”
The Telegraph covers the supermarket’s AGM and focus on a “half empty hall” and angry shareholders complaining about the London venue and weather-related rain delays. The Guardian adds that Lewis was also forced to defend Tesco bank boss’s taxi bill before shareholders.
The BHS scandal rumbles on as MPs were told that Dominic Chappell, the former bankrupt who bought BHS last year for £1, tried to book holiday flights on the company’s travel budget (The Financial Times). Darren Topp, chief operating officer at BHS under Sir Philip’s ownership and promoted to chief executive when Chappell took over, told MPs that he had spotted and blocked the payment (The Telegraph).
The shopworkers’ union has urged Marks & Spencer to open talks as long-serving staff have been told new contract terms will be imposed if they do not voluntarily sign up to pay and pension changes that could leave them thousands of pounds out of pocket (The Guardian).
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