Tesco has cautioned the Labour party against imposing increased taxes on businesses, despite recording profits exceeding £100 per second. The supermarket chain faced accusations of “corporate greed” as it raised its full-year profit forecast to £1.67 billion over the last six months.
This growth occurred even after the controversial rise in employers’ national insurance contributions in April. Shareholders were pleased with a £314 million dividend payout for the half-year period.
CEO Ken Murphy of Tesco appealed to Chancellor Rachel Reeves to present a Budget next month that supports growth and job creation. He emphasized the importance of not hindering industry’s ability to provide value to customers, stating that the current situation is unsustainable.
However, Unite’s general secretary, Sharon Graham, criticized Tesco’s profit generation while many workers struggle financially. She urged the Labour government to address corporate profiteering and ensure that workers do not bear the brunt of companies’ financial gains.
When questioned about Tesco’s pricing strategy, Mr. Murphy emphasized the company’s commitment to all stakeholders. He clarified that Tesco’s price inflation remains below the industry average, offering significant savings to its Clubcard members.
Boosted by customer acquisitions, cost efficiencies, and favorable weather conditions, Tesco’s half-year results surpassed expectations. The company raised its annual profit target to between £2.9 billion and £3.1 billion. Tesco’s UK sales increased by 4.9% in the first half, reaching over £33 billion in total sales.
Despite some consumer concerns regarding the economic climate, Mr. Murphy expressed confidence in Tesco’s prospects for a successful Christmas season. He acknowledged the intensifying competition in the industry but remained optimistic about Tesco’s strong market position.
Tesco highlighted its introduction of over 470 new products, including 300 in its premium Finest range, during the six-month period. The company also noted a significant 11% increase in online sales and the implementation of artificial intelligence to optimize delivery routes, reducing mileage by around 100,000 miles per week.