21 April 2009

Tesco Sees Increased Profits

The weakening British pound has had a negative effect on supermarket giant Tesco - import costs have meant an increase in prices and therefore a harder battle to keep prices down for the consumer.

But in an effort to balance the situation, and to protect margins, Tesco has in place hedging - this means currency movements and fluctuations are insured against.

A wise move, and one of many which has seen Tesco do well - pre-tax underlying profits of £3bn were announced today.

While the food and drink side of the business has had its best sales figures, the non-food products are being worked on in order to increase them. For example, the banking area is set to see a new current account in the next two years. This will join other products such as credit cards, loans and savings accounts.

No comments: