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PRIVACY
Retail & Consumer

Tesco to announce future plans with half-year results

David Lewis is expected to reveal a tough set of numbers for the summer months due to last year's heatwave and Fifa World Cup causing unfavourable comparisons

(Image: PA Wire/PA Images)

Tesco boss David Lewis will be hoping for a positive reception from the City on Wednesday when he unveils the supermarket's latest half-year results.

Back in June, the chief executive impressed analysts at a Capital Markets Day where he laid out his vision for the future of the grocer.

He talked up plans for innovation, including Tesco Finest-only stores, new sites in international markets, and a steady focus on cutting costs, whilst maintaining profits.

However, as with other supermarkets, the boss is expected to reveal a tough set of numbers for the summer months due to last year's heatwave and Fifa World Cup causing unfavourable comparisons.

Analysts predict like for like sales in the º£½ÇÊÓÆµ will be flat, with total sales down 0.1%. Strip out Ireland, and predicted like-for-likes are -0.5%.

Operating profits before one-off costs are set to hit £999 million in the º£½ÇÊÓÆµ and Ireland, with £1.33 billion for the entire group.

Clive Black, retail analyst at Shore Capital, said he expects to see Tesco focus on "wider º£½ÇÊÓÆµ trade over the summer months, where comparatives have been challenging, market activity levels low and competitive intensity, including the greater investment in the proportion from Sainsbury's, high, is likely to be a key area of focus.

"In this respect we sense Group CEO, Dave Lewis, will be highlighting the 'quantum of º£½ÇÊÓÆµ sales', rather than over-focusing upon like-for-like (LFL) volumes."