Overview

• Tesco forecasts adjusted operating profits of £2.7bn to £3.0bn for the next financial year, down from £3.1bn this year, citing competitive pressures and rising costs.
• The company plans an additional £500m in cost reductions to counter higher operating costs, including a £235m increase in National Insurance contributions.
• CEO Ken Murphy highlighted an intensifying price war, driven by rivals like Asda, which has pledged significant price cuts, pressuring Tesco to maintain competitive pricing.
• Despite challenges, Tesco achieved a decade-high UK market share of 28.3%, supported by value-focused strategies and its Clubcard loyalty program.
• Further job cuts remain a possibility, though Tesco emphasizes its track record of managing cost-saving measures while growing its workforce.