By Mantasha - May 26, 2025
Tesco, the UK's largest supermarket chain, undergoes leadership transitions as new UK CEO Ashwin Prasad takes over. The company reports a sales increase to £63.6 billion but sees a 3.2% decline in pre-tax profits. Tesco aims to cut costs by £500 million amidst rising expenses and implements AI surveillance at checkouts to combat theft. The launch of a Pistachio Creme spread in its product range garners positive consumer response. Tesco surpasses its emissions reduction target and focuses on sustainability, introducing new technological initiatives like AI-powered dynamic pricing and drone deliveries.
Tescos via iStock
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In 2025, Tesco, the UK's largest supermarket chain, is navigating a dynamic retail landscape marked by strategic innovations, cost-saving measures, and leadership transitions. Matthew Barnes, Tesco's UK CEO, stepped down after just over a year in the role to pursue other opportunities. Ashwin Prasad, formerly the Chief Commercial Officer, has been appointed as the new UK CEO, effective June 30. Additionally, Natasha Adams, currently CEO of Tesco Ireland & Northern Ireland, will assume the newly established role of Chief Strategy & Transformation Officer from June 9.
Tesco reported a 3.5% increase in sales to £63.6 billion and raised its UK market share to 28.3%, the highest since 2016. However, pre-tax profits declined by 3.2% to £2.2 billion. To mitigate rising costs, including a £235 million increase in national insurance contributions, Tesco announced plans to cut an additional £500 million in costs. These measures aim to offset higher operating expenses and maintain competitiveness amid a growing supermarket price war.
In response to rising retail theft, Tesco has implemented advanced AI-powered surveillance at self-service checkouts. The system uses overhead cameras to monitor transactions and displays instant replays if a product appears unscanned, prompting users to re-scan the item. Additionally, select stores have introduced high-tech security systems for alcohol sales, requiring touchscreen activation and incorporating facial recognition and weighted shelves to monitor item removal.
Tesco has expanded its product offerings with the launch of a new Pistachio Creme spread as part of its Finest range, priced at £4 for a 300g jar. The spread features a rich, creamy texture and a nutty flavor, drawing comparisons to the popular Dubai chocolate. Enthusiastic consumers have expressed excitement on social media, with many planning to purchase the new item.
Tesco continues to prioritize sustainability, exceeding its 2025 target by achieving a 60% reduction in emissions from its operations. The company has introduced new wind and solar Power Purchase Agreements (PPAs) and launched carbon-neutral "Eco Superstores." Additionally, Tesco has implemented AI-powered dynamic pricing and is testing drone deliveries in partnership with Amazon.
