TSCDF - Tesco issues warning on grocery customers trading down

Tesco PLC (OTCQX:TSCDF) warned on shifting consumer spending habits to cheaper products in reaction to soaring inflation. "We are seeing higher frequency shopping trips, so there's an elevation in the number of shopping trips, we are seeing basket sizes coming down a little bit," noted Tesco Chief Executive Ken Murphy to reporters. Murphy said consumers are trading down in staples products like pasta, bread and beans in particular. Tesco (OTCQX:TSCDF) issued a general "health warning" that the product mix change across the business was so far less than 1% but could worsen. The inflation blowback to Tesco (OTCQX:TSCDF) and main rival J Sainsbury plc (OTCQX:JSNSF) arrives with margins and profits already under pressure as they look to keep prices competitive as the battle German-owned discounters Aldi and Lidl. Tesco (OTCQX:TSCDF) reported a 1.5% decline in comparable UK sales in Q1 to miss expectations. Overall sales were up 2%. The grocery

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Tesco issues warning on grocery customers trading down