Achi news desk-
The group noted that the prices of many global commodities have fallen.
The comments provide further evidence that the tide is turning after inflation rose to record highs in the UK amid the recovery from the pandemic and the fallout from Russia’s war on Ukraine.
On Tuesday the Financial Conduct Authority said their research showed the cost of living squeeze appears to be easing.
But the FCA warned that 7.4 million people were struggling to pay bills and credit repayments in January. That was compared to the 5.8ma recorded in February 2020, before the squeeze started.
The prices of many goods and services are higher than they were before the pandemic. Mortgage costs rose after the Bank of England raised interest rates to tackle inflation.
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Mr Murphy said that Tesco was aware that things were still difficult for many customers. The group thinks it has been doing its part by reducing prices enough to make it the cheapest of the UK’s full-line grocers since November 2022.
“Over 4,000 products were cheaper at the end of the year than at the beginning, with an average discount of around 12%,” he said.
Claiming to balance the needs of all stakeholders to create sustainable long-term value, Tesco noted that it had rewarded staff with the “biggest increase in colleague pay ever” in the past year. They have also enjoyed new “wellness benefits”, including virtual appointments with GPs.
The group plans to create around 2,000 additional roles in the UK across 70 new stores and its technology and online teams.
Suppliers stand to benefit. Tesco said they are contributing an extra £75 million to British agriculture.
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But not all stakeholders believe that Tesco is playing fair.
Unite trade union boss Sharon Graham said: “Tesco is raking in mountains of cash while families struggle to put food on the table due to sky-high prices. Many companies have used the cost of living crisis to grab excess profits.”
He claimed that there was an epidemic of profiteering in the UK and that the government had failed to curb it.
Tesco may not have helped itself by highlighting how much cash it is generating and how much of that it intends to pay out to shareholders.
The group said it had paid out £1.8bn to investors by buying back shares since October 2021 with a further £1bn to be written off in the current year.
In addition, Tesco plans to increase the annual dividend paid to shareholders by 11%.
