- Tesco anticipates a potential profit drop of up to £400 million due to increased competition among UK supermarkets, particularly from Asda's price cuts.
- CEO Ken Murphy highlighted the "intensification" of competition and aims to reduce costs by £500 million to maintain competitiveness and offer customers the best value.
- Tesco plans to achieve these cost reductions through automation, supply chain improvements, and other measures, but job cuts haven't been ruled out.
- Despite the competitive landscape, Tesco reported strong sales for the last financial year, reaching £63.6 billion, and increased its market share to 28.3 per cent, the highest since 2016.
- The supermarket remains committed to providing value to customers amidst inflationary pressures and a challenging economic environment.
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