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Tesco captures more shoppers, sees profits jump 11%

Tesco (LSE: TSCO) saw its shares rise 1% at the opening in London after the supermarket chain predicted a further increase in profits for the upcoming financial year. This positive outlook comes on the back …

Tesco (LSE: TSCO) saw its shares rise 1% at the opening in London after the supermarket chain predicted a further increase in profits for the upcoming financial year. This positive outlook comes on the back of strong demand, a rise in new customers, and an increase in market share. Tesco achieved an 11% jump in profits for the 2023/24 period, exceeding analyst expectations.

Britain’s largest retailer, listed on the FTSE 100, forecasts retail adjusted operating profit, as its key profit measure, of “at least” £2.8 billion for its 2024/25 year. This represents a slight increase from the £2.76 billion achieved in the year to Feb. 24, 2024, which itself was ahead of guidance.

Tesco’s success is partly attributed to its strategy of matching prices of discount retailers like Aldi on key items, alongside the continued popularity of its Clubcard loyalty scheme. Group sales, excluding VAT and fuel, rose 7.4% to £61.5 billion, with UK like-for-like sales up an impressive 7.7%. Tesco’s market share also grew significantly, reaching 27.3% of Britain’s grocery market, a 40 basis point increase year-on-year.

This combination of factors has boosted Tesco’s bottom line and positioned it favourably within the competitive grocery market. Over the past 12 months, the stock price has risen by 8%.


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