There are some early signs of how inflation is hitting retailers after Tesco warned the cost of living crisis was forcing customers to cut spending.
Ken Murphy, chief executive of Tesco, warned the company was seeing ‘some early indications of changing customer behavior due to the inflationary environment’ amid ‘unprecedented’ increases in the cost of living.
It came as the supermarket chain missed expectations for the first quarter as UK sales fell 1.5% from a strong trade lockdown last year.
Overall sales rose 2% to £13.6bn, which Tesco said was 9.9% ahead of pre-pandemic levels in 2019.
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What happened overnight
Tokyo stocks opened sharply lower on Friday after a rout on Wall Street as more central banks raised interest rates in a bid to rein in runaway inflation, fueling recession fears.
The benchmark Nikkei 225 fell 2.6pc, while the broader Topix index slid 2.4pc.
Hong Kong stocks opened with further losses on Friday morning. The Hang Seng index fell 0.7pc.
The Shanghai Composite Index fell 0.4pc, while the Shenzhen Composite Index on China’s second-largest stock exchange fell 0.8pc.
- Company : Halford (annual results); Tesco (commercial statement)
- Economy: Inflation (EU)industrial production (WE)