More

    Tesco hikes profit forecast after record Christmas

    Photo: iStock

    Britain’s biggest retailer Tesco on Thursday posted record sales for the key Christmas trading period as inflation stayed high, causing it to upgrade its forecast for full-year earnings.

    Tesco said annual retail operating profit was expected to come in at around £2.75 billion, up from its previous guidance for £2.6-2.7 billion.

    “We stepped up our investment in service over the key festive period, with more colleagues on the shop floor, helping to deliver market-leading availability and making this our best Christmas yet,” chief executive Ken Murphy added in the trading statement.

    In the 19 weeks to January 6, comprising Tesco’s third quarter and Christmas trading period, UK sales jumped 8.1 percent to £16.8 billion compared with one year earlier.

    “Tesco saw strength in fresh food sales and stated that its food inflation was less than its key competitors,” noted Kathleen Brooks, analyst at XTB trading group.

    Snacks and party food sales jumped 13.5 per cent and sales of its top-end “Finest” range rose 17 per cent, on overall underlying UK sales growth of 6.8 per cent.

    While Murphy said he was “cautiously optimistic” about the UK consumer, he warned that a cost of living crisis, where for the last two years high inflation has hit household incomes, was not over.

    “It’s too early to call that,” Murphy told reporters.

    No. 2 supermarket group Sainsbury’s said on Wednesday that, like Tesco, it was seeing consumers spend more on its more expensive food ranges, as they entertain at home rather than going to restaurants.

    Latest

    M&S to open 10 new convenience stores

    Marks & Spencer (M&S) has revealed that it is...

    UKVIA applies to join CTSI Approved Code scheme

    The UK Vaping Industry Association said it has initiated...

    Persistent Greenwich shoplifter jailed again

    A persistent shoplifter who stole more than £6,000 of goods...

    Nestlé brings in Niamh Twyford to lead confectionery business in Ireland

    Nestlé Ireland has announced the appointment of Niamh Twyford...

    Don't miss

    M&S to open 10 new convenience stores

    Marks & Spencer (M&S) has revealed that it is...

    UKVIA applies to join CTSI Approved Code scheme

    The UK Vaping Industry Association said it has initiated...

    Persistent Greenwich shoplifter jailed again

    A persistent shoplifter who stole more than £6,000 of goods...

    Nestlé brings in Niamh Twyford to lead confectionery business in Ireland

    Nestlé Ireland has announced the appointment of Niamh Twyford...

    Nescafé introduces KitKat Hot Chocolate pods 

    Nescafé has launched its latest innovation for its Dolce...

    M&S to open 10 new convenience stores

    Marks & Spencer (M&S) has revealed that it is on track to open 10 new convenience stores this year while renewing up to 50...

    Co-op teams up with Walmart unit to boost quick commerce growth

    Co-op said it is set to work with Walmart Commerce Technologies to implement its online fulfilment technology, Store Assist. The convenience retailer said the technology...

    Morrisons, Iceland join others to stop sourcing tinned pineapples from Del Monte farm in Kenya

    Supermarkets Morrisons and Iceland have ceased sourcing tinned pineapples from a Del Monte plantation in Kenya amid ongoing human rights abuse accusations. Last year, revelations...