Tesco Says Customers Facing ‘Unprecedented’ Increase in Cost of Living

  • Tesco says customers faced with unprecedented increase in cost of living
  • Tesco UK sales fall
  • Shares fall over 1% Friday

Tesco reported earnings for its first quarter ahead of the open Friday, but it’s a statement from the supermarket giant’s chief executive that caught the attention 👀.

The company’s UK sales fell 1.5% compared to the same period last year, but overall group sales increased 2% year-over-year, with the Tesco saying market share grew +37bps in the UK, “outperforming on both value and volume.”

Its performance was impacted by the annualisation of lockdown last year, most notably in general merchandise, clothing, and online. However, the fall in sales was partially offset by inflation.

However, Tesco chief Ken Murphy said “the market environment remains incredibly challenging,” and “customers are facing unprecedented increases in the cost of living.”

“Although difficult to separate from the significant impact of lapping last year’s lockdowns, we are seeing some early indications of changing customer behaviour as a result of the inflationary environment,” added Murphy. 

Tesco shares have dipped 1% Friday.