Half-yearly profits at Tesco have fallen for the first time since 1994.
In the six months to the end of August, the chain made a pre-tax profit of £1.7bn, a fall of 12 per cent.
Tesco's chief executive, Philip Clarke, told Today business presenter Simon Jack: "We'd been running too hot in the UK... We've put 8,000 more staff into our existing trading stores to make sure that the products are better cared for (and) our colleagues have got more time to spend with customers."
He explained that the company had implemented a six-point plan and that he now saw "customers beginning to notice an improvement".
Mr Clarke said that Tesco had seen the first quarter of positive like-for-like growth for seven quarters but added that there was "a lot more for us to do and we've only just really begun".
And he confirmed that the company will be spending £1bn to refresh the UK business through hiring staff, improving the way stores are presented, plus "a big investment in the internet" and the creation of 90 drive-through stores.
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