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Tesco is comfortably riding out the challenging trading conditions facing UK retailing, recording pre-tax profits of GBP2.95 billion for the 52 weeks to February 28. Although exposure to non-food and the impact of its Discounter brand have dented sales growth, the supermarket's international credentials and ability to diversify into new markets will see it continue to prove a formidable retailer.
The gap between incomes and housing costs has grown in every state. With the economy not expected to recover to previous peaks, middle-income households might soon feel the pinch and have to curb spending. CPG manufacturers must respond appropriately, through greater offerings of more affordable goods sold through cheaper channels.
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