An angry backlash threatened to engulf Tesco yesterday as the supermarket chain ditched plans for dozens of multimillion-pound superstores to relieve pressure on its strained balance sheet.
Dave Lewis, the chief executive, wielded the axe over pensions, jobs, dividend payouts, stores and non-core businesses in an attempt to save £250 million annually by cutting overheads by 30 per cent.
As unions fretted over thousands of possible job losses, Tesco’s shares soared by 15 per cent to 211¾p, their biggest one-day rise, on strong Christmas trading figures, which fuelled optimism among City investors that new management is getting to grips with the scale of the company’s difficulties.
However, last night Moody’s cut Tesco’s credit rating to junk status.
“We will be simpler, more agile and lower