...October 19, 2023 This report does not constitute a rating action. LONDON (S&P Global Ratings) Oct. 19, 2023--Tesco PLC's interim results announced earlier this month for the fiscal year ending on Feb. 24, 2024, showed a resilient performance, despite the weak U.K. economy. We expect the economic growth in the U.K. will remain muted well into 2024, not least because of the lingering negative effect of high inflation and monetary policy rates that will turn increasingly restrictive in real terms as inflation abates. The group has successfully navigated the tough competitive landscape in the U.K. food retail sector, where discounters are gaining significant market share. The U.K. is Tesco's key market. The group has 3,722 stores in the country (as of Aug. 26, 2023) and its market share stood at 27.4% over the 12 weeks to Oct. 1, 2023 (as per the latest data from Kantar Group). Tesco reported an increase in retail like-for-like sales of 7.8% to ú30.0 billion. The increase resulted from competitive...
