Tesco to introduce 'strong deals' for shoppers as festive season begins

Tesco is all set to introduce "strong deals" over the next few months as the supermarket prepares for the festive season. Supermarkets are battling to cut prices and attract shoppers, and this competition is expected to become even fiercer in the coming months, the officials have warned .

Tesco chief executive Ken Murphy said he expected people to spread Christmas spending over a wider period to be more manageable and affordable. The popular UK supermarket has been performing well in the competitive retail environment, stating that it is "continuing to win with customers." Reflecting this success, the company announced on Thursday that it now expects its annual profits to be higher than previously estimated, forecasting earnings between £2.9 billion and £3.1 billion.

Tesco has seen positive results from a growing trend of people choosing to cook and eat at home more often. This shift has led to increased sales of fresh ingredients and a noticeable rise in cooking from scratch.

According to Mr Murphy, the change in habits may be a lingering effect of the Covid-19 era, influenced by the popularity of streaming services that encourage staying in, or simply a way for households to save money.

The CEO said he had made "no decision" and "can't speculate" on whether Tesco would close shops if its larger stores are not made exempt from paying business rates.

The company pays more than £700m a year in tax on premises, he added.

However, Tesco's chief financial officer Imran Nawaz defended the company's profits, saying its investment to bring costs down "worked better than we thought".

He said: "When you sell more, you make more."

This was the biggest contributor to the higher profit outlook, he added.