Tesco Chief Executive Dave Lewis has vowed to improve the chain’s competitiveness after admitting that it become expensive for consumers with the price gap to its rivals getting “too great”. In an interview with the Daily Mail, Lewis said: “We aim to be competitive at all ends of the market and that includes the opening price point in every category.”

Meanwhile, despite all its recent troubles, Lewis told the newspaper that he was focused on restoring Tesco’s market dominance and even growing the business beyond its current 30% share of the grocery market. “The optimist in me says that is only three out of ten, so there is some upside”, said Lewis. He also revealed that he had met with 60 of the group’s top suppliers and their Chief Executives to discuss their experiences of the business and to share with them how he saw Tesco developing.

Despite speculation that Tesco is planning to sell-off some of its overseas assets, Lewis ruled out selling its chains it Korea or Thailand, adding: “Tesco could do more to have deeper roots in some of these markets to be able to withstand the volatility there”. However, he was less enthusiastic about Eastern Europe, pointing to long term underperformance in the region.

In separate report by trade magazine The Grocer, a leading analyst stated that Lewis has a 75% chance of successfully turning round performance of the retailer. Senior Bernstein analyst Bruno Monteyne said that Tesco is in the “recovery on track zone” after recent Kantar Worldpanel figures suggested the retailer’s good Christmas performance was no fluke. “Encouragingly, trends in food & drink have accelerated from the excellent Christmas,” he said.

“Importantly this has not all been about price. Tesco has not purchased this market share simply by resorting to unsustainable price cuts and vouchering. This is an improved offer that is resonating with customers.”