…Tesco posts 10% profit rise

Tesco has posted a steady 10% rise in pre-tax profits, netting almost 1.5bn for the 26 weeks to August 23. The uplift has come despite increasing pressures on the retail sector.

Tesco has posted a steady 10% rise in pre-tax profits, netting almost £1.5bn for the 26 weeks to August 23. The uplift has come despite increasing pressures on the retail sector.

The supermarket giant has reported that core UK sales increased by 9.7% and trading profit rose 8.6% on the same period last year. UK non-food sales were also up 4% and Tesco.com sales rose by 20.5%.

Terry Leahy, Tesco’s chief executive, says: “Tesco is at its best in tough markets – responding to the changing needs of customers – and that’s why we have been able to make good progress this year, despite facing into powerful economic headwinds and carrying planned start-up losses in the US.”

While Tesco continues to dominate the UK supermarket sector, the credit crunch and tighter household budgets have meant cheaper alternatives such as Lidl, Aldi and Asda have been seeing an increase in their sales.

Tesco has responded by releasing a new range of some 400 low-cost products. The retailer serves more than 20 million customers every week.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here