Tesco predicts price war before Christmas amid ‘pressure on household budgets’
Retailer manages to up full-year profit expectations by 100m after luring shoppers with price cuts over summer
Tesco has warned of an intensifying price battle in the run-up to Christmas amid pressure on household budgets" but upped its full-year profit expectations by 100m after it grabbed market share and drew in more shoppers by keeping a lid on inflation over the summer.
The UK's biggest retailer said it expected to make annual profits of up to 3.1bn, up from a previous maximum of 3bn, as it said efforts to cut the price of 6,500 items by an average 9% had worked better" than it predicted. The company said its rate of inflation was well behind" the latest headline rate for groceries of 4.9% set out by the analysts Worldpanel, formerly known as Kantar.
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