Tesco on inflation: we’re seeing early signs of changing consumer behaviour


Tesco on inflation: we’re seeing early signs of changing consumer behavior

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >


Wajeeh Khan

Jun 17, 2022

Tesco plc blames inflation for a 1.5% decline in its first-quarter U.K. sales.

CEO says early signs of changing consumer behaviour are starting to show up.

The supermarket giant still reiterated its outlook for the full financial year.

Shares of Tesco plc (LON: TSCO) ended roughly flat on Friday even after the supermarket giant said its underlying U.K. sales took a hit in the first quarter of fiscal 2023.

Tesco U.K. sales were down 1.5%

Tesco blamed inflation as it reported a 1.5% decline in homeland sales. According to CEO Ken Murphy, higher prices are now translating to early signs of changing consumer behaviour.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

There’s an elevation in the number of shopping trips, we’re seeing basket sizes coming down a little bit. Staples like pasta, bread, and beans is where we’re seeing customers choose to trade down to entry level or core own brand level product.

U.K. inflation jumped to a forty-year high of 9.0% in April and experts forecast a further increase to double-digits in the coming months.

Tesco reiterated its full-year outlook

Despite lower sales, Tesco expanded its market share in the U.K. by 37 basis points. Comparable sales overall, it added, were still resilient in the recent quarter. Excluding fuel and value-added tax, total like-for-like sales went up 2.0% to £13.57 billion.

The supermarket giant also reiterated its outlook for the full financial year. It forecasts up to £2.60 billion in retail adjusted operating profit in 2023 versus the year-ago figure of £2.65 billion.

The stock that trades at a PE multiple of 12.79 is down more than 15% versus the start of the year.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,


75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Visit site




Stocks & Shares



Generated by Feedzy