Tesco to take pain as inflationary pressures mount – Daily Business

Tesco: momentum slowed

Tesco may seek to take in some pain from the expected rise in inflation in order to protect its price advantage over rival supermarket chains, says AJ Bell.

Despite its upbeat post-Christmas trading upate, year-end figures this week are expected to show that like-for-like sales growth fell short of expectations.

“The post-Christmas trading update feels a long time ago given the energy shock created by the conflict in Iran,” say Bell analysts.

“While the headlines from that statement suggested all was rosy in the garden – the company solidifying its position at the UK supermarket summit with its highest share of shoppers’ spending in a decade – the market dug through the weeds and found some details it didn’t like.

“Momentum slowed during the festive period and a poor showing for the company’s wholesale business Booker acted as a drag on the wider group.”

DIARY

Monday 13 April

Full-year results from Churchill China

Trading statement from Sirius Real Estate

In the US, quarterly results from Goldman Sachs

Tuesday 14 April

Trading statement from Oxford Instruments

In the US, quarterly results from JPMorgan, J&J, Wells Fargo, Citigroup, BlackRock

Wednesday 15 April

Full-year results from Saga

Trading statements from Barratt Redrow, Hunting and Rank Group

In the US, quarterly results from Bank of America and Morgan Stanley

Thursday 16 April

Full-year results from Tesco

Trading statements from Dunelm, Rentokil and Entain

UK monthly GDP

US unemployment claims

In the US, quarterly results from Netflix and PepsiCo

Friday 17 April

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