Tesco results in spotlight amid industry cost pressures and driver shortages in Xmas run-up

The supermarket chain is due to release its first-half results on Wednesday, amid expectations that its retail operating profits will recover to pre-pandemic levels this year. That comes after huge extra costs associated with getting the business through the pandemic, including taking on additional staff.

Analysts at investment platform AJ Bell said: “[The] topic of input costs and buying may be the hottest one of all and analysts and shareholders alike will no doubt look to [chief executive Ken] Murphy for comments on stock levels, shipping bottlenecks and supply chains, HGV driver availability, carbon dioxide availability and related topics which ultimately boil down to two things - how much are input and wage costs going up [and] to what degree is Tesco willing and able to put up prices to compensate to protect its margins, if at all?”

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