Tesco today said it racked up a 10% rise in first-half profits despite the “powerful economic headwinds” facing the business.
Tesco, which has lost ground to discounters as hard-pressed shoppers look to cut food bills, said like-for-like sales rose 4% excluding fuel during the second quarter.
This month it fought back with a new campaign in the UK as “Britain’s Biggest Discounter”, slashing costs on hundreds of items and launching 350 new products.
It said the customer response so far to the biggest overhaul in its grocery ranges for a decade was “very pleasing”.
Underlying pre-tax profits for the six months to August 23 were £1.45bn (€1.8bn), in line with market expectations.