City & Corporate: In the News ... Tesco - Bring us up to speed

At least one high-street name is surviving the recession unscathed. Tesco this week revealed an annual underlying profit of more than £3bn for the first time - surpassing an astonishing £1bn a week in revenue. Despite this healthy 8.8 per cent growth in adjusted profits, Tesco has found itself fighting a battle for market share, with discount retailers looking to lure its price sensitive customers. The Times reports that Tesco's revamped own-brand range has helped stem the tide of lost customers to Morrisons and its new budget rivals, but it is facing renewed pressure from Sainsbury's and Asda.

- The reaction?

Tesco is not only the UK's number one supermarket; it has established itself a the third-biggest retailer in the world. Any move Tesco makes is big news, and its results were widely reported across the media this week. Most welcomed the news, but some analysts sounded a word of caution about its declining market share and ability to drive further growth in the UK.

- Who are the PR players?

The large Tesco in-house team is led by Lucy Neville-Rolfe, director of corporate and legal affairs. Maitland is the firm's long-standing retained financial PR agency.

- What happens next?

Tesco's core grocery business is actually growing at a slower pace than its competitors (three per cent like-for-like compared with Morrisons 7.9 per cent), so the company is looking to other markets to maintain its huge growth. It will focus on growing its international business, despite some recent teething troubles in the US. The retailer will also launch 30 in-store 'banks' and 41 'telecoms centres' as it seeks similar domination in personal finance and the pay-as-you-go mobile market.

30.4% - Tesco market share at 22 March - 13.3% ahead of Asda

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