Thu, 10 Apr 2025

Thu, 10 Apr 2025 Tesco braces for grocery price war with rivals

Shoppers could benefit as the supermarket giant said competition with rivals over prices had intensified.

* Tesco expects lower profits this year, potentially up to £400m lower due to a potential price war with other supermarkets.
* Operating profits are likely to be between £2.7bn and £3bn, below last year's figure and lower than analyst forecasts of £3.2bn.
* The company's share price fell by 6% on Thursday.
* Rival supermarkets Sainsbury's and Marks & Spencer also saw their share prices fall, by 4.8% and 2.6% respectively.
* Asda recently announced big price cuts in an attempt to restore its fortunes, sparking a potential price war across the industry.
* Tesco's chief executive Ken Murphy said that there had been an "intensification" of competition across the industry.
* The company said it would have flexibility and firepower to maintain its position in the market due to lower profit expectations.
  >>