Philip Clarke insisted Tesco’s focus remains firmly on the UK.
The supermarket’s group CEO affirmed that “we absolutely think we can continue to grow in the UK”.
“Don’t any of you think we are giving up on the UK,” Clarke said boldly when questioned on the supermarket’s strategy by IGD Convention chair Michael Buerk.
In reporting first-half results last week, the company highlighted "excellent growth" in Europe and Asia but makes about two-thirds of its sales and profits in the UK.
Clarke warned that Tesco sales in bricks and mortar stores in the UK in the second half of 2011 will be flat.
He said the result was as part of a “big investment for customers” as part of its Big Price Drop initiative.
Clarke also emphasised Tesco’s focus on recruiting talented staff. He said: “We’re now a global business, and we need a world class team if we are to win and to compete. We don’t simply need to attract talent, we need to motivate and retain it. That’s why I spend so much time - I reckon about three quarters of my time - talking to the team, hearing about what they are finding on the shop floor, helping them improve their performance.
“Some of you may think “surely this is not a priority now?” Well, let me stress what I said earlier: when tough times hit, it is even more important to be motivating your team, building that team, helping it overcome the hurdles they face. Some of those challenges are practical - others relate to morale: both are important.”
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