Future Of British Business
Tesco Faces Profit Squeeze as Inflation Threatens Spending
- Grocer is ‘laser focused’ on prices amid cost of living crisis
- Stock declines as much as 7% in London on uncertain outlook
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Tesco Plc warned profit will be squeezed this year as the U.K.’s biggest supermarket chain battles to keep prices low for consumers facing a cost of living crisis. The stock fell to its lowest level in more than six months.
The grocer, along with rivals like Wm Morrison Supermarkets, is grappling with inflation that soared to a 30-year high last month, pinching household budgets even as input costs swell. Chief Executive Officer Ken Murphy pledged to keep costs in check to ensure shoppers don’t defect to discounters like Aldi and Lidl.