Tesco's zł.500 million investment

as part of a massive investment plan for the new financial year. "We will spend around zł.500 million in total on these investments," said Ryszard Tomaszewski, chairman of Tesco Polska.

The company will open its first small supermarkets in Poland, with an area less than 440 sqm, under its Tesco Express brand, creating some 2,500 new jobs. The firm also announced plans to spend zł.70 million on pay rises and training for staff, which should calm employee protests the company has recently faced.

Tesco also plans to expand its health food line by more than 300 products and boost vegetable sales through a price drop of up to 20 percent. However, the company has decided against launching its own mobile telephone service, which its rival Carrefour has done, and is also against starting internet sales and introducing loyalty cards, saying that it is "too early."

The food giant last week published results for the 2007/2008 financial year. "Our sales rose by 24 percent to zł.8.1 billion [excluding VAT] thanks to organic growth and the takeover of Leader Price stores," said Tomaszewski. During the last financial year Tesco opened 25 new stores in Poland.