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Tesco reports easing price pressures as profits surge

BySamantha Johnson

Apr 10, 2024
Tesco reports easing price pressures as profits surge

Tesco has reported strong sales and profits for the past year, with pre-tax profits reaching £2.3bn and sales increasing by 4.4% to £68.2bn in the year to 24 February. The UK’s biggest supermarket chain noted that price pressures on grocers had eased, with price inflation in groceries substantially lessening. Despite this positive news, Tesco’s CEO Ken Murphy acknowledged that many customers were still facing difficulties.

The company has been focused on providing better value for shoppers by cutting prices and offering promotions such as the Aldi Price Match offer and Clubcard promotions. Over 4,000 products were cheaper at the end of the year compared to the start, with an average price reduction of around 12%. With more than 330,000 employees and a 27.3% share of the grocery market, Tesco continues to see growth as customers respond positively to improvements in the value and quality of its products.

Global retail analyst Charles Allen noted that Tesco has been working hard to stay competitive against rivals like Aldi and Lidl. While the company’s results were in line with expectations, Allen cautioned that the coming year may present challenges for the retailer. Rising staff bills coinciding with a slowdown in inflation could impact sales growth, making it more challenging for Tesco to maintain its momentum. Despite this, Tesco remains committed to offering customers the best value possible in an ever-changing market.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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