Tesco has posted bumper profits and claimed to have won market share amid the challenges posed by the rise of discounters as it faces complications on a Scottish island. The supermarket giant has sparked controversy by proposing to have its outlet in Stornoway on Lewis open on Sundays. It is in expansion mode after making £1.
55bn profit from its retail operations in the first half up 10% from the £1.42bn generated in the same period last time. Chief executive Ken Murphy said Tesco had reaped the rewards of the efforts it had made to cut prices and increase customer loyalty.
“We have lowered prices on thousands of lines, launched or improved over 860 products in partnership with our suppliers and growers, and our customer satisfaction scores continue to improve,” he declared. The group underlined the importance of its Aldi Price Match scheme and the reductions offered under the Tesco Clubcard programme. Tesco claims 23 million UK households have Clubcards, which allow it to collect huge amounts of information on shopping habits.
Tesco claims it has been the cheapest full-line grocer since November 2022. It reckons price cuts and Clubcard offers made in the first half will save customers up to £385 off their annual grocery bill as they grapple with the burst of inflation that started during the recovery from the pandemic. READ MORE: Luxury handbag maker spurns bid from Mike Ashley's Frasers amid retail downturn However, the group has faced accusations of ‘profiteering�.