18 April 2016 - Janet Bird
Tesco proved that 12 months is a long time in retail when it announced pre-tax profits of £162 million, just a year after making a £6.3 billion loss - the biggest in its history.
And to mark its swift turnaround, the grocer will award its 300,000 employees a one-off bonus of around five percent of their annual salary in May.
In addition to its return to profitability, Tesco was also celebrating a 0.9 percent rise in UK like-for-like sales - its first quarter of sales growth in three years.
The supermarket was spurred into drastic action in the aftermath of an accounting scandal that caused huge damage to its reputation.
In the financial year ending February 27, it slashed head office roles by a quarter, closed 60 stores that were not making a profit, reduced prices on thousands of products and introduced 2,000 new lines. Tesco also invested in 9,000 customer facing roles to improve service and try to rebuild its tattered image with consumers.
So far, the strategy has paid off in winning back customers and boosting sales. The challenge for Tesco now is to keep up the momentum.