Tesco's price pledge as profits surge on higher sales

Tesco has stated that it’ll proceed to decrease grocery costs “wherever we can” whereas revealing a leap in gross sales and income.

The UK’s greatest retailer stated it anticipated the outlook for meals inflation to proceed to ease within the run as much as Christmas regardless of upwards pressures remaining on procuring payments.

Experts have warned that increased oil costs and a weakening of the pound in opposition to the greenback, which makes imports dearer, are a risk to shopper prices within the months forward.

Tesco stated it had taken market share from its largest rivals within the grocery sector’s battle for patrons because it reported a 13.5% leap in adjusted working income for the primary half of its monetary 12 months to £1.4bn.

Like for like gross sales at its supermarkets have been up 7.8% over the six months in comparison with the identical interval final 12 months.

That determine rose to eight.7% solely for the UK.

Chief govt Ken Murphy stated: “We know how challenging it is for many households across the country, as they continue to grapple with ongoing cost of living pressures.

“We are dedicated to doing the whole lot we are able to to drive down meals payments and Tesco is now constantly the most affordable full-line grocer.

“This relentless deal with prospects, mixed with important price reductions from our ‘save to take a position’ programme, has pushed our robust efficiency within the first half of the 12 months.

“Food inflation fell across the half and while external pressures remain, we expect that it will continue to do so in the second half of the year.

“We are in a powerful place to maintain investing for patrons, and can proceed to decrease costs wherever we are able to – doing the whole lot in our energy to verify prospects can have a improbable, reasonably priced Christmas by procuring at Tesco.”

Source: information.sky.com”