Tesco expects higher profits thanks to price cuts

After a strong first half of the year, Tesco is raising its profit forecast. Higher spending and a better-than-expected response to price cuts are giving the company more confidence.

Competition remains intense

The retailer lowered its forecast this spring due to the threat of a price war, but now feels more optimistic. In the six months to August 23, like-for-like sales rose 4.3%, while total revenue increased 5.1% to 33.1 billion pounds (38.4 billion euros).