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

Tesco bosses will be under pressure this week to show how rising costs, supply chain issues and HGV driver availability are affecting Britain’s biggest retailer.

Tesco, Britain's biggest retailer by some way, is due to release its results later this week. Picture: Andrew Milligan/PA
Tesco, Britain's biggest retailer by some way, is due to release its results later this week. Picture: Andrew Milligan/PA

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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