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Opinion
Andrea Felsted

Tesco Is Being Way Too Pessimistic About Inflation

Britain’s biggest supermarket stands to gain from rising fuel and food prices. Plus, its competitors are looking constrained.

The season.

The season.

Source: Bloomberg

Tesco Plc has become the first British food retailer to warn about the impact of the cost-of-living crisis. But it’s worth remembering that inflation — even at a 30-year high of 7% in March — isn’t all bad for grocers.

On Wednesday, the company announced a rebound in underlying operating profit in the year to February 2022, up almost 60% to 2.8 billion pounds ($3.6 billion). Profit from its stores rose 35% to more than more than 2.6 billion pounds. Free cashflow also surged by 70%.