When this column rated Tesco as a “buy” in October last year, the verdict hinged on two factors: how the supermarket could manage its pricing against inflation; and its ability to manage spending. Its annual results show encouraging signs on both. Britain’s biggest grocery chain has reported a 7 per cent increase in sales to £61 billion and a 13 per cent increase in adjusted operating profit to £2 billion.
Revenue growth can be flattered by rising food prices, but Tesco said that its sales volumes — which indicate how many products shoppers are buying — had been strong. In Britain, Tesco reckons it gained 26 basis points in volume market share thanks to competitive pricing strategies such as its Aldi price match, a low
