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Tesco's sales hit as cost of living crisis worsens

The company highlighted the impact of soaring inflation on shopper behaviour, amid warnings of rocketing costs for staples over the summer
Tesco's sales hit as cost of living crisis worsens
  • UK retail sales fall in first-quarter
  • Shoppers moving to value items to save money

Tesco (TSCO) warned that the cost of living crisis is affecting consumption after reporting a fall in UK retail revenue, with management saying that customers are moving towards value products to cut down on shopping costs.

In a trading update, chief executive Ken Murphy said “we are seeing some early indications of changing consumer behaviour as a result of the inflationary environment”. Speaking on a media call, he noted that for staples like bread and pasta, “we are seeing the customer choose the own brand or the entry-level brand variety to help them manage their overall basket cost”.

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