Tesco ‘doing whatever we can’ to keep prices affordable amid Iran war
Tesco’s chief executive has said the supermarket giant is @doing whatever we can to help keep down the cost of the weekly shop” despite the increased uncertainty linked to the conflict in the Middle East.
The UK’s largest supermarket group reported stronger-than-expected adjusted operating profits of £3.15 billion for the year to 28 February, a slight rise from £3.13 billion a year earlier.
Sales, excluding VAT and fuel, also grew by 4.6 per cent to £66.6 billion over the past year.
For the current financial year, the retailer expects profits to be between £3 billion and £3.3 billion.
Tesco told shareholders it was “providing a wider range of guidance than we were previously planning” due to uncertainty caused by the “Iran war.”
The group also plans to make a further £500 million in cost savings in 2026/27, having surpassed its £535 million target last year.
Ken Murphy, chief executive of Tesco, said: “We are committed to doing whatever we can to help keep down the cost of the weekly shop, and with the conflict in the Middle East creating further uncertainty for consumers and the economy more broadly, that commitment matters more than ever.
“Over the last year, despite cost pressures from new regulation, we have increased our investments in keeping prices low, further improving quality and offering even better service.
“Customers are choosing to shop more with us as a result, leading to our highest market share for over a decade.”
The UK’s largest supermarket group has grown its share of the UK grocery market in recent years, on the back of a strong focus on pricing, helping support customer demand despite pressure from industry rivals.
It was also among retailers brought before the Chancellor earlier this month to discuss the impact of the conflict, as bosses and the Government agreed to explore together how to ease the cost of living for consumers.
Tesco is also the UK’s largest petrol retailer, with more than 500 forecourts across the country.
The price of petrol has risen by about 19 per cent to an average of 158.03p per litre since the crisis began at the end of February, and diesel prices have shot up by about 34 per cent.
