// UK grocers see over £1bn wiped off their market value following a warning over inflationary pressures from Tesco
// Ocado was the worst performing grocer with shares closing down 2.6% in Wednesday trading
Supermarkets including Sainsbury’s and Marks & Spencer saw a total of just over £1bn chipped off their market value on Wednesday, after Tesco warned that rising costs and shifts in consumer habits could see profits fall in 2022.
Britain’s largest supermarket chain Tesco said profits for its core retail business could fall by as much as £250 million this year.
Ocado and Sainsbury’s suffered poor performances on Wednesday, following its update, however Ocado was the worst performing grocer with shares closing down 2.6% in Wednesday trading, while Sainsbury’s was also down 2.5% and Mark’s and Spencer’s dropped 2.1%.
READ MORE:
- Tesco focuses on becoming “most convenient retailer” with new Express stores
- Sainsbury’s invests in staff pay to help with cost-of-living crisis
With household budgets under pressure, Tesco said the supermarket group was “laser-focused on keeping the cost of the weekly shop in check” and stated that it would be “making more products more affordable, in more places than anyone else”.
Profit more than trebled last year, posting a pre-tax profit of £2.03bn, powered by revenue rising 6%.
With “significant uncertainties in the external environment,” the supermarket said it would provide a wider range of profit guidance than usual.
Guidance for the 2022/23 financial year was for retail adjusted operating profit of between £2.4bn and £2.6bn.
Click here to sign up to Retail Gazette‘s free daily email newsletter
