Tesco to Announce Profits of GBP2.5 Billion

Mon, 16 Apr 2007
 
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Tesco are expected to confirm this week record profits of £2.5 billion, meaning that one pound in every seven spent in British shops is through the UK’s leading supermarket’s tills.

The announcement of the company’s latest figures will underline Tesco's dominance of the high street and prompt further action from campaigners to curb its power .

Its financial results will be unveiled tommorow with City analysts predicting that sales will have risen by 10 per cent to £42.7 million, and pre-tax profits by 12 per cent to £2.5 billion.

Tesco are planning to expand into the US market this year and observers believe they could be ringing up sales of £110billion in 10 years time.

Despite the success Tesco is expected to play down how much money it has made in Britain and instead highlight its attempts to combat environmental issues and emphasise its international growth.

The grocery retailer has recently come under fire for their domination of the UK grocery market, with the Competition Commission investigating the supermarket industry.

A wide range of campaigners have accused Tesco of having too much control on the retail industry and called for a curb on their power, and more than 100 consumers have written to the Commission blaming the supermarket giant for decrease in independent and local butchers, grocers and corner shops .

However Clive Black, a retail analyst at stockbrokers Shore Capital, defended Tesco saying, "Tesco is a massive employer and is responsible for massive investment in the UK. It is a great British success story ."

Mr Black added that profits at the company should reach the £3 billion mark within two years.

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