Tesco continues to target growth despite fall in profits
Tesco’s chief executive Ken Murphy has said that the supermarket group is continuing to target growth, despite an “incredibly tough year” for customers which saw profits fall.
The group hailed the opening of 91 stores over the course of its 2023 financial year, including its 2,000th Tesco Express store and 1,000th One Stop.
Tesco also praised the performance of wholesalers group Bookers, acquired in 2017, which delivered its “strongest year ever”.
The supermarket group also acquired nine Joyce’s stores in the Republic of Ireland and the intellectual property of now-closed retailer Paperchase.
Tesco’s adjusted operating retail profit fell 6.1% to £2.49bn during the financial year, driven by the impact of lower year-on-year sales volumes and an “ongoing investment” in its customer offer, Tesco said, as it has reduced prices to remain competitive with value retailers.
However, retail like-for-like sales increased by 5.1%, with sales volumes holding up “relatively well” amid cost-of-living pressures.
Ken Murphy said: “The resilience and agility that we have developed over the last few years has created a sustainable competitive advantage that leaves us well-placed to deal with any challenges that may arise. It has enabled us to deliver another strong performance across the group, whilst continuing to make strategic progress.”