Tesco’s profits fell by almost 20% to £825m during the past year, despite growing sales and winning customers from its rivals, because of the increasing cost of operating during the coronavirus pandemic.
The retailer’s group sales rose by 8.8% to £53.4bn during the 52 weeks to 27 February, surpassing analysts’ expectations, while its UK sales increased by 7%.
The supermarket’s online sales soared by 77% during the year to £6.3bn, as it doubled its capacity for online deliveries to 1.5m slots per week.
However, Tesco incurred £892m of extra costs in the UK for doing business during the pandemic, including hiring more staff to cover employees who were off work as a result of Covid-19 or while they were self-isolating.
Tesco hired almost 50,000 temporary workers during the pandemic, about 20,000 of whom have joined the retailer permanently.
Tesco announced in December that it would repay in full £535m in … Read more