The last big economic downturn caused the market share of discount supermarkets to swell and Britain’s Big Four grocers are keen to avoid the mistakes of the past. There are signs that Tesco is managing to balance pricing with profitability. Better sales plus cost savings in the first six months mean it now expects adjusted profits of between £2.6 billion and £2.7 billion from its retail operations this year. It had forecast profits flat on last year’s £2.4 billion.
Admittedly, food prices inflation has played a big part in lifting like-for-like sales, which were 8.4 per cent higher in the UK and Ireland. Volumes were still “marginally flat to down”, according to Ken Murphy, Tesco’s boss, adding that food inflation is easing and should
