Tesco has said it expects to make less profit this year during the rising prices war in the UK’s major supermarkets.
The British’s largest grocer has predicted a profit between 7 2.7bn and 3bn compared to $ 3.1 billion compared to the fiscal year.
Chief Executive Ken Murphy said low profits would “give Tesco the Flex flexibility and fire strength to maintain its position in the market” due to the growing competition.
The company’s share price fell after that last month Asada started cutting off at a large price Trying to restore her luck.
Tesco said it is more competitive at a higher price than ever before, but in the past few months it has seen the “further increase in the competitive intensity of the UK market”.
It states that if the profit is low, it will likely reflect further increase in the “competitive severity” of the UK market.
Before the update of Tesco’s results on Thursday, the analysts were predicted to predict the average profit of 2 3.2bn.
The Supermarket said it was determined to give the best price to consumers.
“We see more opportunities to save and strengthen our competition,” he said.
Analysts have previously suspected SDA prices on the move that it will give rise to a price war.
But Richard Lem, chief executive of retail economics, said that there are “market indicators” that are due to prices war.
He said that the supermarkets had engaged in these battles in recent years. He told the BBC Today program, “And we live in an amazing competitive sector when it comes to the grocery sector, so the price and the price are always the key decisive that consumers run through the doors of supermarkets.”
Tesco, like its rivals, is facing increasing costs due to national insurance and minimum wage increase. The company said its bill had increased by $ 235 million.
Mr Murphy said that despite the fear of US prices related to inflation, he did not think his effect would be “important to Tesco”, which states that the supermarket receives a large amount of its products from the UK.
Equity analyst, Hargirus Lancedown, said, “Recently, emotion has been lifted in the sector”, but added that “it has not yet been implemented”.
He added, “Even if that happens, Tesco believes it is in a very competitive position, which has been going on for many years, which has helped keep consumers loyal to the prices of Ald Price match and club cards.”
Mr Czechress suggested that Sadda “does not have a maximum interruption”.
