Supermarket giant Tesco has issued a fresh message to shoppers after its shares fell as it continues to compete with the likes of Aldi and Lidl.
The UK’s biggest grocery chain saw shares fall 6% as it said retail operating profits are set to fall by up to 9% in the year to next February, with the group facing rising costs for fuel and energy, and as suppliers hike their prices. The retail chain's boss has warned, though, that earnings will come under pressure from soaring inflation and as it battles to keep prices low for cash-strapped shoppers.
The alert came as official figures revealed inflation rocketed to a 30-year high of 7% in March, up from 6.2% in February. Tesco said it was “laser focused” on trying to keep prices low for its customers, but costs are rising across the board and it said it was seeing early signs that shoppers are beginning to tighten their belts in the face of the cost-of-living crisis.
