Tesco has made savings of £112 million in logistics and distribution since the first half of 2016-17, it has revealed in its results for the year to 23rd February.
The retailer set a target of reducing operating costs by £1.5 billion by full year 2019-20, and it said that it had now made savings of £1.35bn. Most of this, £973m, has come from changes to its store operating model, while another £267m has come in the area of goods not for resale.
The savings come in a year that has seen strong growth in both sales and profits for the retailer, leading chief executive Dave Lewis to say: “After four years we have met or are about to meet the vast majority of our turnaround goals. I’m very confident that we will complete the journey in 2019-20.”
Group operating profit rose 16.7 per cent to £2.2 billion, while revenue for the year was up 11 per cent at £63.9 billion.
“The full year margin of 3.45 per cent represents clear progress and the second half level of 3.79 per cent, even before the benefit of Booker, puts us comfortably in the aspirational range we set four years ago,” said Lewis.