Overview

• Tesco has unveiled plans to cut an additional £500 million in costs to address rising operating expenses, including increased employer National Insurance Contributions due to recent government tax changes.
• The company has lowered its adjusted operating profit forecast for the year to between £2.7 billion and £3.0 billion, down from £3.1 billion in the previous year.
• CEO Ken Murphy highlighted the growing competitive pressure in the UK supermarket sector, with rival Asda promising its largest price cuts in 25 years.
• Despite these challenges, Tesco reported strong sales growth of 3.5% to £63.6 billion and achieved a market share of 28.3%, its highest since 2016.
• Tesco emphasized its commitment to delivering value to customers and maintaining competitiveness in a rapidly evolving market environment.