PART OF THE WEEK: Tesco to announce half-year results
Customers and shareholders will be keen to hear Tesco’s latest update as supermarkets battle to win over hard-pressed shoppers.
Grocery bills are still rising – up 12.2 percent from a year ago, according to figures from Kantar – but major players have been cutting prices in recent months.
The price war has helped Tesco gain market share against the onslaught of discounters Aldi and Lidl. Therefore, Wednesday’s half-year results will be analyzed to see how this has worked out.
Tesco saw its first quarter turnover rise by 8.2 percent to £14.8 billion. But share prices have retreated from a yearly high in May, so investors will be hoping for good news.
Susannah Streeter of Hargreaves Lansdown said: ‘Tesco’s keen focus on keeping prices low is helping the company fend off rival discounters, which should bode well for its half-year results.
‘Expanding Aldi’s price match promotion has also paid off, helping Tesco maintain shopper loyalty and investors will be keen to see this trend continue.
“Inflation remains perhaps the biggest headwind, and as some commodity prices remain stable, sustainable relief may still prove elusive.”
Tesco boss Ken Murphy will also be asked about the impact shoplifting is having on the company and its staff, amid warnings that the country is in an ‘epidemic’ of theft and violence in stores.