// Tesco said has seen early indications of changing customer behaviour due to surging inflation
// The supermarket is maintaining its full-year profit guidance despite reporting a fall in UK and Irish sales in its latest quarter
Tesco has maintained its full year profit guidance despite reporting a 1.5% fall in underlying UK sales in its latest quarter compared to the same period last year when they were boosted by a third pandemic lockdown.
Britain’s biggest retailer, which has an over 27% share of Britain’s grocery market, recorded its sales for the first 13 weeks up until the end of May, and said its profit and cash outlook will stay the same, though it cautioned the market environment remains “incredibly challenging.”
The retail giant also said its bank sales rose by nearly 40%, owing to a recovery in card sales and travel money.
The grocer kept its profit guidance for the full year and said it was expecting retail adjusted operating profit of between £2.4 billion and £2.6 billion, down from £2.65 billion made in 2021-22.
Tesco chief executive Ken Murphy said: “Whilst the market environment remains incredibly challenging, our laser focus on value, as well as the daily dedication and hard work of our colleagues, has helped us to outperform the market.
“Our material and ongoing investment in the powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices is removing the need for customers to shop elsewhere.
“Although difficult to separate from the significant impact of lapping last year’s lockdowns, we are seeing some early indications of changing customer behaviour as a result of the inflationary environment. Customers are facing unprecedented increases in the cost of living and it is therefore even more important that we work with our supplier partners to mitigate as much inflation as possible. ”