Covid has cost the retailer Tesco £533m dealing with the pandemic over the last six months and it has also set aside £155m to cover bad debts on its banking side as it warns that the deteriorating economy is weighing down on customer finances.
The Company announcing its half year results said that Whilst significant uncertainties remain, we now expect retail operating profit in the current year to be at least the same level as 2019/20 on a continuing operations basis.
Sales in the UK were up over 8 per cent on the same period last year but turnover was badly hit in the Banking sector.
The retailer said that it had seen major shifts in customer buying habits; in UK, food sales up 9.2%, clothing down 17.2% while Online delivery capacity more than doubled to reach 1.5m slots a week, including serving 674,000 vulnerable customers.
Chief Executive Ken Murphy said:
“The first half of this year has tested our business in ways we had never imagined, and our colleagues have risen brilliantly to every challenge, acting in the best interests of our customers and local communities throughout. I would like to thank all our colleagues for their amazing contribution and I am delighted and proud to be part of such an incredible team.
We are absolutely committed to continuing to invest in value for customers and safety for all in these uncertain times.
Tesco is a great business with many strategic advantages. I’m excited by the range of opportunities we have to use those advantages to create further value for our customers and, in doing so, create value for all of our other stakeholders.”
