SHARE OF THE WEEK: Tesco set to announce half-year results
Customers and shareholders will be keen to hear the latest update from Tesco as supermarkets battle to win over hard-pressed shoppers.
Shopping bills are still rising – up 12.2 per cent on a year ago, according to figures from Kantar – but the big players have been on a price cutting spree in recent months.
The price war has helped Tesco gain market share against an onslaught from discounters Aldi and Lidl, so its half-year results on Wednesday will be analysed to see how this has played out.
Tesco saw its revenues rise by 8.2 per cent to £14.8billion in the first quarter. But shares have eased back from the year high in May so investors will be hoping for some good news.
Susannah Streeter at Hargreaves Lansdown said: ‘Tesco’s razor-sharp focus on keeping prices down is helping it fend off rival discounters, which should bode well for its half year numbers.
‘Expanding the Aldi price match promotion has also been paying off, enabling Tesco to retain shoppers’ loyalty and investors will want to see this trend continuing.
‘Inflation remains arguably the biggest headwind, 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 a ‘epidemic’ of theft and violent in stores.