Tesco customers flock to gourmet or budget rivals

U.K.'s Tesco chain is reeling after its profits plunged 24.5% as customers abandoned the grocer for upmarket retailers like Waitrose or discounters Aldi or Lidl. Analysts said Tesco is losing customers to Sainsbury's, Waitrose, and Marks and Spencer because of their perceived quality. Meanwhile, Aldi posted a 40% rise in annual sales, with an extra one million customers a week. It is estimated that Tesco takes £3 in every £10 spent in the nation’s supermarkets. To combat the drain of customers, radically overhauling the business, focusing on smaller convenience outlets and its website, and doing away with plans for 100 new large stores. Tesco said it would be spending £1billion on store makeovers, new food lines and extra staff. To read more, go here.