Tesco Slumps as Retailer Slashes Dividend 75% on Forecast

Tesco Plc unexpectedly slashed its dividend and reduced investment as the largest U.K. retailer was squeezed between German discount chains and upscale stores such as Waitrose, driving the stock to the lowest in almost 11 years.

Dave Lewis, the 49-year-old manager from Unilever who was named Tesco’s chief executive officer when Philip Clarke, 54, was ousted last month, will step into the job next week, one month earlier than planned. Tesco cut the interim dividend by 75 percent, reduced capital spending plans by 16 percent and forecast profit this year of no more than 2.5 billion pounds ($4.2 billion), compared with the 2.7 billion pounds estimated by analysts.