Tesco lifts profit forecast and says consumer confidence is resilient
Sales rise 2% to £33.8bn in the past six months, helped by strong trade online Business live – latest updates Tesco has raised its annual profit forecast as the supermarket group said consumer confidence has remained relatively resilient this year despite ongoing geopolitical tensions “creating uncertainty”. The UK’s biggest grocer said sales rose just 2% to £33.8bn in the first six months of its…
Tesco has lifted its profit forecast and stated that consumer confidence remains resilient, despite ongoing geopolitical tensions. The UK's largest grocer reported a 2% rise in sales to £33.8bn over the past six months, driven by strong online sales that increased by 8%. The premium own-label Finest range also saw a 9% revenue jump.
Tesco's CEO, Ken Murphy, acknowledged that consumer confidence has been relatively resilient this year, but ongoing geopolitical uncertainties continue to cast a shadow. Earlier this year, Tesco had warned that profits could decline due to increased geopolitical uncertainty stemming from the Iran conflict. However, recent economic indicators suggest the war has not significantly impacted the UK economy yet.
Tesco now expects underlying annual profits to range between £3.15bn and £3.3bn, an improvement from its previous expectation of at least £3bn. The company anticipates profits to be slightly lower than a year earlier. Sales at established UK Tesco stores grew by 1.5%, with food sales performing well. However, Tesco's Booker wholesale arm continues to face challenges, with sales down 2.6%.
The supermarket highlighted its growing use of artificial intelligence across operations, including a meal planning assistant tested with 280,000 staff and launched for customers in September. AI is also aiding cost savings through more efficient in-store stock replenishment and enhanced energy efficiency in Tesco's supermarkets.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
