Tesco trims profit view as cost squeeze bites

STORY: Full-year profit will come in at the lower end of previous guidance for Tesco.

That was the forecast from Britain's biggest retailer on Wednesday (October 5).

Tesco now projects operating profit over the full year of up to $2.9 billion.

It blamed uncertainty over how the cost-of-living crisis will hurt spending by shoppers.

British consumer confidence sank to a record low last month largely due to higher inflation

That was also before the government's mini-budget hit the mortgage market, and led to warnings of a sharp drop in house prices.

Wages have also not kept pace with inflation - which was at 9.9% in August.

Tesco noted consumers were buying less per shopping trip, and trading down to cheaper own-label products.

The retailer reported first-half retail adjusted operating profit of about $1.4 billion.

That was down 10% from last year, and just below analysts' average forecast,

First-half group sales rose 3.1% to $32 billion.

Tesco's shares have fallen more than a quarter so far this year,

Though monthly industry data has shown the firm outperforming its biggest rivals - Sainsbury's, Asda and Morrisons - on a sales value basis.