17 April 2007 | Paul Snell
Retailer Tesco says better purchasing helped it achieve profits of over £2.5 billion last year.
Announcing its preliminary results, the supermarket credited its pan-European purchasing of fresh produce and own brand products for strengthening the business and improving competitiveness in the rest of Europe.
Sales in Europe (outside the UK) grew 18.7 per cent to £6.3 billion. Total group sales were up 10.9 per cent compared with last year, reaching £46.6 billion.
The company said more direct sourcing from Asia and a larger and more efficient supply chain had boosted sales of non-food items. Non-food sales across the group now account for £10.4 billion.
The retailer intends to introduce more local suppliers to its stores and guarantee dairy farmers at least 22p per litre of milk through its new direct contracts (Web news, 10 April).
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