Profits at Britain's Tesco to stall as inflation lingers

STORY: Britain’s biggest retailer Tesco said it was unlikely to grow its profits this year.

That as inflation continued to take a toll on its customers and supply chain.

The firm expects to deliver broadly flat operating profit in 2023/24.

The retailer recorded a 6.3% drop in its 2022/23 financial year.

With a 27% market share, Tesco has dealt with inflation better than most rivals.

It has used its size to secure better terms from suppliers.

It also kept customers as it was able to match prices on key items with discounter Aldi.

Tesco CEO Ken Murphy said he expected inflation to moderate throughout the year.

Adding that he expects Tesco to benefit this year as customers continue to eat more at home.

Tesco sales rose over 5% to $72 billion in its 2022/23 financial year.

This was driven by UK inflation hitting a 40-year high of 11.1% in October.

But the rising cost of wages, utility bills and goods hit profits, while customers also searched for value.