Why it’s interestingTesco reported the results at a time when its retail operation faces pressure on all sides. While the giant has a 27.4 per cent market share, an impending merger between Sainsbury’s and Asda would give them 30.7 per cent.
Meanwhile boss Dave Lewis last month launched Jack’s, a budget chain competitor to Aldi and Lidl, with 10-15 stores opening over the next six months. Aldi, however, had already vowed that Jack’s won’t beat its prices, while announcing an expansion that would bring its UK presence to 1,200 stores by 2025. Tesco was also hit with a £16.4m fine for a cyber attack on its banking arm, but the bank still managed to boost revenue by six per cent to £89m. The supermarket is midway through a business rebrand, and most of the way through launching its ‘Exclusively at Tesco’ range of products. However, this didn’t stop like-for-like sales in central Europe and Asia both dipping, falling 1.5 per cent in Europe as Poland implemented a ban on Sunday trading. But its purchase of Booker in March delivered £16m in synergies in the first half, and is on track to save Tesco £60m by the end of the year.