Tesco to reveal impact of cost-of-living crisis
Supermarket giant Tesco will provide an insight into how the cost of living crisis is impacting on consumer spending habits when it updates on trading this week.
The company will reveal how sales held up during the first quarter of the year and Friday’s update is also likely to include an assessment of more recent trading.
Matt Britzman, an equity analyst at Hargreaves Lansdown, said management’s commentary on how they see things at the tills will be a “key indicator” as to how shoppers are dealing with steep rises in fuel and energy costs alongside interest rate hikes.
“Next week’s trading statement should shed some light on whether the cost-of-living crisis is impacting consumer spending. Shopper confidence fell sharply through the start of April and the energy price cap hike suggests wallets have felt the pinch since then,” said Britzman.
“Tesco’s commitment to focusing on pricing should hold it in good stead if consumers shift down the value chain but that comes at a cost. Inflation was called out as a challenge in the full-year results just gone, albeit one that was being mitigated with improved efficiencies.
“We’ll be looking out for any commentary on whether the group can keep prices low, mitigate inflation and keep margins intact.”
Results of the survey done by YouGov on behalf of CAS found that 9 per cent of people always run out of money before they are paid wages, pension payments or benefits. A further 11 per cent run out of money most of the time.
The charity warned it is a sign of the growing cost-ofliving crisis "gripping the country" and reflects a five percentage point increase since last year.
Many people feel they have no option but to take on debt, putting increasing numbers of people at risk of poverty, CAS says.
This is leading to a rise in demand for money and debt advice.
Myles Fitt, financial health spokesperson at CAS, said people are facing impossible choices on spending.
He said: "One in five people running out of money before payday is extremely concerning, given that these figures have seen an increase since 2021.”