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UK Supermarkets saw almost £1bn wiped off their value yesterday as the cost of living crisis began to take hold, after Tesco had warned of the future impact of rising costs and inflation in its annual report.
Tesco and Sainsbury’s both saw their share prices drop following the latest update, as Tesco shares fell 2% to 265.2p, while Sainsbury’s shares dropped 2.5% to close at 238.6p.
Meanwhile, Marks and Spencer shares dropped by 2.1% to 150.1p, and Ocado saw the most severe decline at 2.6% to 1153.5p.
It comes after Tesco provided a conservative forecast of between £2.4bn and £2.6bn in its annual report, warning of “significant uncertainties” in the coming year, despite seeing its profits more than double to over £2bn in 2021.
At the time Ken Murphy, Tesco CEO, said: “Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check – working in close partnership with our suppliers, as well as doing everything we can to reduce our own costs.”
