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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.
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.
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