Tesco has announced an annual profit of £2.846bn, an 11.8% increase for 2007. Although Tesco admit prices had risen by around 1.5% across the board, the increase on food prices masked price cuts on non-food items.
Tesco has stood strong as the UK high street has suffered as households have been hit by higher mortgage costs, fuel prices and food bills.
International sale were up a staggering 25.3% and Tesco say that half of its trading profit now comes from its overseas stores. All this amidst analysts being concerned about the group’s performance in the US. But the supermarket chain have claimed to be encouraged by the first 60 stores figures, and plans to open a further 150 stores this year.