(MENAFN) The largest retailer in the United Kingdom, Tesco, lowered its full-year profit prediction due to uncertainties over how the rising cost of living problem is going to effect customer purchasing.
Even before the government's new economic strategy drove mortgage rates skyrocketing and spurred worries of a rapid decline in house values, confidence among British consumers hit a record low last month as they deal with rising inflation.
Tesco, which controls 27 percent of the British grocery industry, reported on Wednesday that consumers were continuing to alter their purchasing practices in order to save money and cut waste.
According to CEO Ken Murphy, customers were also purchasing more own-label products and frozen meals, which are frequently less expensive than branded or fresh alternatives, "we are seeing more frequent shops, smaller basket sizes and less shopping online."
Tesco stated that it now anticipated a retail adjusted operating profit in the range of 2.4-2.5 billion pounds (USD2.7-USD2.9 billion) for the fiscal year 2022-2023.
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