Tesco boss Dave Lewis has told staff that its culture, processes and brand proposition must change but progress is being made despite this week’s accounting storm.

In an email sent to staff in the wake of the accountancy scandal, seen by Retail Week, Lewis said: “We want to work in a business which is open, transparent, fair and honest. We all expect Tesco to act with integrity and transparency at all times.

“Our values are what define us, and it is in times of challenge that these values are tested. At this challenging time I commit to you that we will live those values to the full.”

Tesco revealed on Monday that it had overstated profits for the half year by £250m. Lewis has launched an investigation to discover how this happened and has suspended four senior executive, including Tesco UK boss Chris Bush.

It has since parachuted in its new chief finance officer Alan Stewart from M&S.

However, Lewis rallied staff and said that despite the furore it was making progress in its turnaround with a “sharper focus to service”.

Lewis said it was investing in more hours in stores as it gears up for Christmas.

He told staff: “I am clear that everything we do has to be about giving colleagues the space and support they need to do a great job for customers. This is a time for us to pull together as a total Tesco team, with a complete focus on our customers. The steps we’re taking can help deliver that.”

 

Dave Lewis’ email in full:

Dear colleagues,

Thank you for everything you have been doing this week and for your support in what has been a challenging few days for our business.

I want to update you on the steps we have taken since our announcement on Monday, and to respond to some of the questions colleagues have asked me this week.  

You will be aware that we have launched an immediate independent investigation. We have asked Deloitte to lead this work, supported by our external legal advisers Freshfields. Due to the complexity of the investigation we do not expect to be able to say much more on this issue before we publish our interim results on 23 October. I hope you can appreciate this.

As I said on Monday, this is a serious issue and we have seen an understandable reaction from the markets and the media this week. I know the last few days have been difficult for us all, but I want to be clear that nothing takes away from the huge amount of passion and expertise that I know exists in this business, or from what I believe we can build in the future.

Turning our business around will require change in our culture, as well as in our processes and our brand proposition. We want to work in a business which is open, transparent, fair and honest. We all expect Tesco to act with integrity and transparency at all times. Our values are what define us, and it is in times of challenge that these values are tested. At this challenging time I commit to you that we will live those values to the full.

Above all, we must get back to doing our best for customers.  Despite everything that has been happening this week we have been making progress, and we’re giving a sharper focus to the service we provide by investing in more hours in stores as we prepare for Christmas. You’ll be seeing the results of this over the coming few days.

I am clear that everything we do has to be about giving colleagues the space and support they need to do a great job for customers. This is a time for us to pull together as a total Tesco team, with a complete focus on our customers. The steps we’re taking can help deliver that.


Thank you for everything you are doing and if you have any questions at all, please do get in touch.

Dave

Topics

Tesco discloses £250m overstatement of profit forecasts