Tesco has unveiled staggering annual profits of £2.3 billion, marking a significant 12.8% increase that's reigniting debates about supermarket pricing during Britain's ongoing cost-of-living crisis.
Record-breaking performance amid economic pressures
The retail giant's financial results reveal an impressive turnaround from last year's £1.8 billion, with like-for-like sales climbing 6.8% across the UK and Ireland. This performance comes despite the supermarket investing over £580 million in keeping prices competitive for customers feeling the pinch.
Chief Executive Ken Murphy described the results as "strong," highlighting that Tesco had outpaced the market while simultaneously cutting prices on more than 4,000 everyday products.
Political storm brewing over supermarket profits
The announcement has drawn immediate criticism from political quarters, with Shadow Chancellor Rachel Reeves declaring: "Working people are still struggling with the cost of living and it cannot be right that at the same time, the supermarkets are making record profits."
Reeves has committed to launching a full investigation into the grocery sector if Labour forms the next government, promising to "get to the bottom of whether people are paying over the odds for their food and essentials."
Consumer impact and market position
While Tesco celebrates its financial success, many shoppers continue to feel the strain of grocery inflation. The supermarket maintains it has worked hard to balance customer needs with business sustainability, pointing to its price lock campaign and overall market competitiveness.
The results cement Tesco's position as Britain's dominant grocery retailer, controlling more than 27% of the market and demonstrating remarkable resilience in challenging economic conditions.
