Tesco: 'Customers get' fake farms strategy

Tesco's new range of own-label meat and fresh produce has been criticised for using the names of farms that don't exist.

"Customers get it" the chief executive told journalists this morning, insisting the branding is not misleading and that shoppers are wise to what's going on.

Fake farms is one thing, it was the fake finances that landed Tesco in such hot water in September 2014.

The Serious Fraud Office is still investigating why profits were over-stated to the tune of £263 million, meanwhile Dave Lewis - who inherited the accounting scandal - is attempting to revive the supermarket's fortunes.

There are plenty of signs of an authentic turnaround of sorts: Tesco is back in profit (after a record loss of £6.3 billion last year) and, as Lewis puts it, "more customers are buying more things from us, more often".

Tesco's bank and it mobile phone business are both growing.

Dave Lewis has closed 60 stores, shelved plans for others, flogged assets he deemed "non-core" (Blinkbox and Homeplus) and its army of staff have been moved into a less generous pension scheme.

In-store there's been an attempt to improve service, simplify ranges and lower prices.

Job done? Not really. Our shopping habits look to have changed permanently and the likes of Aldi and Lidl more obviously match the new mood.

The discounters are ascendent and Tesco won't promise to match them on price.

Across Tesco's British business like for like sales fell over the financial year and Lewis warns of "uncertain and difficult conditions ahead". The crisis may be over but that sounds very cautious.

After a four month rally, Tesco's shareprice is the biggest faller on the London Stock Exchange this morning.