SHARE OF THE WEEK: Tesco prepares to announce half-year results
Customers and shareholders will be keen to hear the latest updates from Tesco as supermarkets battle to win over struggling shoppers.
Shopping bills continue to rise (up 12.2 percent from a year ago, according to Kantar figures), but the big players have been cutting prices in recent months.
The price war has helped Tesco gain market share against the onslaught of discount chains Aldi and Lidl, so its half-year results on Wednesday will be analyzed to see how it has played out.
Tesco saw its revenue rise 8.2 per cent to £14.8 billion in the first quarter. But the stock has retreated from a year’s high reached in May, so investors will be hoping for good news.
Susannah Streeter of Hargreaves Lansdown said: ‘Tesco’s sharp focus on keeping prices low is helping it fend off rival discounters, which should bode well for its half-year figures.
‘Aldi’s expanded price match promotion has also paid off, allowing Tesco to retain shopper loyalty and investors will want this trend to continue.
“Inflation remains arguably the biggest hurdle, and with some commodity prices remaining sticky, sustained 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 the country is in an “epidemic” of shoplifting and violence.