Supermarket price increases are showing signs of slowing down, according to Tesco‘s CEO, Ken Murphy.
While food inflation in the UK has been higher than in most developed economies, Murphy stated there are “encouraging early signs” that inflation is starting to ease.
Go deeper with GlobalData
Over the past month, Tesco has witnessed price reductions in certain essentials such as milk, bread and pasta. However, this does not imply that the overall cost of filling a shopping cart is decreasing.
Tesco addresses shopper concerns and government proposal
A recent study by Which? revealed a decline in shopper confidence towards major supermarkets, with suspicions that prices have been kept artificially high.
Shoppers and farmers have expressed frustration, claiming that they bear the burden of the rising cost of living while supermarkets protect their profits. Chancellor Jeremy Hunt proposed a voluntary price cap on food essentials, but Murphy clarified that the government had not approached Tesco with this idea.
The industry insiders dismissed the concept as a mere publicity stunt.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTesco remains focused on providing value to customers
Despite the challenges posed by inflation, Murphy emphasised that Tesco remains committed to delivering value to its customers and ensuring that they receive the best possible prices.
He acknowledged the early signs of inflation easing across the market and reiterated Tesco’s tireless efforts to offer excellent value to its customers.
Tesco’s strong financial performance
Tesco’s annual profits for the previous year amounted to £2.6bn, accompanied by an 8.2% increase in like-for-like sales compared to the previous year’s period.
These positive financial results reflect Tesco’s ability to navigate the economic landscape while striving to meet customer demands and expectations.
Concerns raised over Clubcard loyalty scheme
In a separate development, Which? lodged a complaint with the competition watchdog regarding Tesco’s Clubcard loyalty scheme.
The consumer watchdog expressed concerns that the supermarket chain was not adequately displaying prices in the scheme, prompting further scrutiny of Tesco’s pricing practices.
As Tesco continues to address inflationary pressures and shopper concerns, the supermarket giant aims to maintain its position as a leading retailer in the UK by providing customers with the best possible value and service.
