Britain鈥檚 largest retailer Tesco on Thursday raised its 2025/2026 profit guidance as the supermarket chain won customers with competitive prices.
Group adjusted operating profit is now expected to reach between 拢2.9 billion ($3.9 billion) and 拢3.1 billion, up from a previous forecast of 拢2.7 billion to 拢3 billion, Tesco said in a statement.
Increased competition in the UK market had led Tesco in April to lower its profit guidance.
鈥楥ompetitive intensity remains elevated,鈥� the company said.
However, it added 鈥榓 better-than-expected customer response to our actions and the benefit of an extended period of good weather have helped offset the cost of our investments.鈥�
Tesco uses lower price offers to attract customers in the face of competition, such as matching prices of German-owned discounter Aldi.
