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| Tesco: People watching every penny to make ends meet | Tesco: People watching every penny to make ends meet |
| (32 minutes later) | |
| Tesco has said people are "watching every penny" as they try to make ends meet, amid rising costs. | Tesco has said people are "watching every penny" as they try to make ends meet, amid rising costs. |
| The UK's largest supermarket chain said customers are looking for ways to make their money go further, including switching from branded products and cutting back on eating out. | |
| It came as Tesco reported a fall in profits and warned full-year earnings would be at the lower end of guidance. | |
| It also announced a further boost to pay for UK workers. | |
| The cost of living is increasing at its fastest rate in nearly 40 years, driven by the rising cost of food and energy. | The cost of living is increasing at its fastest rate in nearly 40 years, driven by the rising cost of food and energy. |
| It is eating into household budgets, with prices rising faster than wages. | It is eating into household budgets, with prices rising faster than wages. |
| What is inflation and why are living costs rising? | |
| Milk and cake prices rise, but fruit gets cheaper | |
| Aldi becomes Britain’s fourth-largest supermarket | |
| Tesco said consumers were already spending less as shopping habits normalised after the pandemic, but they are cutting back even more now because of inflation. | |
| The supermarket giant said operating profits in its retail division fell by 10% in the six months to the end of August. However, sales across the whole group excluding its fuel business increased by more than 3% . | |
| The retailer now expects annual underlying retail earnings of between £2.4bn and £2.5bn, which is at the lower end of previous guidance. | |
| "As we look to the second half [of the year], cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market," said Ken Murphy, Tesco's chief executive. | "As we look to the second half [of the year], cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market," said Ken Murphy, Tesco's chief executive. |
| "We know our customers are facing a tough time and watching every penny to make ends meet." | "We know our customers are facing a tough time and watching every penny to make ends meet." |
| Tesco said it would lock in the prices of more than 1,000 everyday products until next year. | |
| It also announced that its shop staff in the UK are set to receive another pay rise, their second this year. |