Tesco’s pre-tax profits increased by a significant margin to £2.3bn and sales rose by 4.4% to £68.2bn for the year ending 24 February, according to the supermarket chain. Despite the positive results, CEO Ken Murphy acknowledged that many customers were still facing challenges due to price pressures in groceries.
To provide better value for money, Tesco implemented initiatives like the Aldi Price Match offer and Clubcard promotions, resulting in over 4,000 products being cheaper with an average price cut of about 12%. The company’s focus on enhancing the quality and value of its products has helped it maintain its position as the UK’s largest supermarket chain, holding a 27.3% share of the grocery market.
According to global retail analyst Charles Allen, Tesco has worked hard to compete with rivals like Aldi and Lidl. While the reported results align with expectations, they were slightly below anticipated figures. Looking ahead, Allen mentioned that challenges lie ahead for Tesco due to increasing staff costs in conjunction with a slowdown in the rate of price inflation, which might affect sales growth.
