Tesco Posts Impressive Results After Defying Supply Chain Disruption, But Challenges Ahead

Tesco raised its full-year profit forecast today after reduced costs related to the pandemic and its strong supply chain helped it deliver better-than-expected first-half results.

Tesco saw its like-for-like sales in the UK climb 1.2% over the 26 weeks to 28 August. This followed a 0.5% rise in the first quarter, accelerating to 2% in the second as comparatives softened due to the easing of Covid restrictions in the summer last year.

NamNews Implications:

• ‘UK’s biggest player was able to leverage its supplier relationships and distribution capability to maintain good levels of product availability…
• …events such as Euro 2020 and staycations helped.’
• The key for suppliers is to compare their Tesco performance by format, geography and category.
• Rest assured that Tesco’s ‘bumps in the road’ will be less than those of rivals.
• After all, every little helps… (to ward off PE predators…)

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