Tesco pays price for cost of living crisis as profits are halved to £1bn

THE cost of living crisis is taking its toll even on the mighty Tesco as profits halved from £2 billion to £1 billion in what it said has been “an incredibly tough year” for shoppers.

- Simon EngStand

The company claims it has been shielding its customers from the worst of the inflation crisis, while fending off competition from rivals such as Lidl and Aldi.

For 2022 sales rose 5.3% to £57.6 billion, as Tesco held its position as the most powerful grocer in Britain. It says it is the only major grocer to gain market share over the past three years.

Signs of a fall in soaring grocery costs came in drips and drabs, as Tesco lowered the price of milk — a four-pint bottle is 10p cheaper at £1.55.

Official figures show food inflation up 18.2% in the year to February, the worst since 1978.

Murphy blamed “unprecedented levels of inflation in the prices we have paid our suppliers for their products, and the cost of running our own operations”.