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Successful Tesco escalates British
price war and awards its managers Tesco, the successful UK commerce multinational, will cut the prices of some 700 products. This latest move in the British price war will cost the retailer some 60 million GBP (almost 90 million USD). ASDA Wal-Mart has been particularly aggressive in its pricing, causing concerns about collective agreement provisions and benefits for Tesco workers. USDAW, the Uni Commerce affiliate, has a membership of almost 100,000 in Tesco. Last year was a very good one for Tesco, which made a profit of over 1 billion GBP (1.4 billion USD). This year has started equally well and the company is now heading towards a result of 1.2 billion GBP. International sales are now up 50 per cent from the previous years, thanks to several store openings. This year, Tesco has added 40,000 square meters to its sales area and by the end of the year, this will have grown to 300,000 square meters. The British retail giant pays its management well. Three of the top directors have annual incomes of more than 1 million GBP (1.4 million USD). Chief Executive Terry Leahy earns 1.5 million GBP. |
