Tesco profits up to £2.8m April 15th, 2008

Tesco, The UK’s largest retailer, has seen profits increase by 11.8% to £2.846bn. Despite the credit crunch and downturn in retail, Tesco surprised analysts with these results, causing their shares to rise over 5.5% this morning.

Across the board prices at Tesco have risen by 1.5%, but this masks the higher rise on food items, which is then offset by discounts on some non-food items. The contribution from Tesco’s expanding overseas operations also bolstered results as international sales increased by over 25%.

There is no sign of store falling from its position as the UK’s number one retailer. In 2007 it opened 139 stores taking its tally to 1,608 and there is further expansion planned in 2008. The group estimates it will create around 30,000 jobs worldwide, with 10,000 of those coming to the UK.