By Tesco warns about annual profits after raising pay for the third time
This will be the third time the supermarket chain has raised pay in 13 months, as the UK’s biggest retailer said it was aiming to make £500m of savings this year to offset ‘higher costs’.
The Guardian reported from 13 November, the basic hourly rate of pay in stores will increase by 20p to £10.30 (or £10.98 in London), making a total 8% increase in pay this year. They also said they were freezing prices on more than 1,000 products until next year.
Ken Murphy, the chief executive of Tesco, said: “We know our customers are facing a tough time and watching every penny to make ends meet.
“As we look to the second half, cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market. Despite these uncertainties, our priorities are clear. We have the right long-term strategy and we will continue to balance the needs of all of our stakeholders.”
Tesco reported a near-64% fall in pre-tax profits for the six months to 27 August to £413m. Sales rose 6.7% to £32.5bn. They cited UK sales increased only 0.7%.
Tesco also said there had been a 13% increase in sales of its Finest premium own-label range.
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