By Tesco to rein in prices as profits treble
According to reports, Tesco profits last year trebled amid rising sales.
The UK’s largest chain has reported that pre-tx profits are around £2.03bn, with a £636m figure the previous year. Group sales rose by 2.5% to £54.8bn, with retail sales rising by 2.3%.
From the BBC, Tesco has warned of ” significant uncertainties” and suggested performance may be affected.
Chief Executive Ken Murphy said: ” Clearly, the external environment has become more challenging in recent months”.
” Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check”.
Allegedly products that require significant energy to produce are experiencing cost pressures, reportedly Tesco accepted a 20% cost price increase in milk.
Mr. Murphy has said strong product availability has been retained, however, products like sunflower oil were less due to the war.
Chief Executive of Retail Economics, Richard Lim, has said Tesco was ” well-positioned”.
Online sales declined by 6.5% due to customers returning to physically shop in stores, from the pandemic restrictions that have eased.
The contributions to the inflation are allegedly fuel prices and energy bills, according to the Office for National Statistics.
From reports, the consumer prices index rose from 6.2% in February, economists have even suggested a further rise.
Petrol prices rose by 12.6p a litre between February and March, Diesel prices saw a rise of 18.8p a litre too.
There has been a slight economic growth of 0.1%, with prices increasing across the board.
The war in Ukraine has reportedly led to oil prices rising to levels ‘not seen for 14 years
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