Tesco profit forecast soars

Supermarket giant Tesco’s latest trading update was further proof of rampant profiteering in the sector, Unite general secretary Sharon Graham said.

Tesco announced on Thursday (January 11) that its Christmas sales were higher than expected. It also revised upwards its profit forecast for the full year to £2.75bn, up from the previously forecast of the £2.6-7bn.

Tesco’s profits boost comes as food inflation remains stubbornly high at 6.7 per cent in December.

Commenting on Tesco’s latest trading update, Unite general secretary Sharon Graham said, “At a time when food prices continue to rise and millions of people are still struggling to feed their families, Tesco have been raking in bumper profits on the back of profiteering.

“Corporations like Tesco have done very well out of the cost-of-living crisis – unlike working people who have had to swallow inflated costs that have lined the pockets of the bosses and investors,” she added.

“The government could easily choose to prevent companies exploiting a national crisis to bank grossly excessive profits. Instead, they simply let the gravy train continue.”

Unite’s groundbreaking profiteering report published last year revealed the extent of profiteering in sectors throughout the economy, including across the food supply chain.

Unite also highlighted this week the latest GDP figures, which show that the economy is still at risk of recession. Although the economy expanded by 0.3 per cent in November after a fall in October, overall output shrank by 0.2 per cent in the three months to November, a sharper than expected fall.

Commenting, Graham said, “Today’s figures only confirm what workers see and hear every single day. Our economy needs intensive care as the result of low investment, crumbling infrastructure and a cost-of-living crisis which makes daily life unaffordable.

 “This is a result of choices made by our politicians over many years. It’s time we invested to improve the economy for the benefit of all”.

By Hajera Blagg