TESCO TO INVEST MILLION OF DOLLARS IN UK STORE OVERHAUL, WHILE IN THE US ….

UK-based retailer Tesco is to spend $624 million on revitalizing its UK stores as it looks to reconnect with British shoppers, The Sunday Times reports.

Philip Clarke, CEO of the grocery and general merchandise retailer, plans to spend the money on renovating its domestic units and hiring more staff to provide a better service. Clarke admitted that Tesco's poor performance over Christmas was partly down to “the people in stores being asked to do too much. We want to make an investment there.” He added: “It's not just about giving the stores a lick of paint. We're going to invest cash to put more people into the right stores, in the right areas and to train them to be even better so they can look after the product and customers."

With internet sales growing rapidly, Clarke said there will be fewer 100,000 square foot Extra stores in the future. He said: "How long can a retailer responsibly go on putting down huge footage when there's this extraordinary river flowing past called the internet?" On the US business, Clarke said Tesco will make a decision on whether it can make sustainable profits in 2012-13: "I said we had to get to break even in 2012-13. That will be the right time to make an assessment about whether it can make sustainable profits.”

Source: Planet Retail