Skip to content 
Search

Latest Stories

Basket sizes coming down a little bit, customers opting for cheaper products: Tesco says Britons feeling the inflation pinch

Food inflation is predicted to hit 15% this summer.

Basket sizes coming down a little bit, customers opting for cheaper products: Tesco says Britons feeling the inflation pinch

Britons are buying less, switching to cheaper products and shopping more often as they try to cope with soaring inflation, supermarket giant Tesco said on Friday, describing the market environment as "incredibly challenging".

Pessimism weighing on Britain's households has hit unprecedented levels, as wages struggle to keep pace with inflation that reached 9% in April and is heading for double digits. Food inflation is predicted to hit 15% this summer.

"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," Tesco Chief Executive Ken Murphy told reporters after Tesco reported a fall in underlying UK sales in its first quarter.

Britain's biggest retailer, which has an over 27% share of the UK grocery market, said it was also seeing early signs of customers opting for cheaper products in areas of significant inflation.

"Those staples like pasta, bread and beans is where we're seeing customers choose to trade down to the entry level or the core own brand level product," he said.

Murphy highlighted Tesco's convenience store business and Booker wholesale division as trading well in the crisis and said the group won market share in all its markets.

But he said Tesco's observations on the changing trading dynamics came with a "health warning", given that the product mix change across the business was so far less than 1%.

MAKING SAVINGS
The Bank of England stuck to its gradual increases in interest rates on Thursday but said it was ready to act "forcefully" if needed to stamp out dangers posed by inflation it now sees topping 11%. 

A raft of industry data shows that consumers are looking to cut spending by removing more expensive meat and fish from the shopping list, reducing the amount of car journeys they make and cancelling music and TV subscriptions and repair warranties on domestic appliances.

Tesco's shares have fallen 14% so far this year but most analysts consider it best placed amongst Britain's major supermarket groups to navigate the downturn due to its buying power. The stock was down 0.2% at 0956 GMT.

It is benefiting from the popularity of its 'Clubcard Prices' loyalty scheme and the unrivalled scale of its store network and online operation.

(Reuters)

More For You

uk weather

Amber heat health alerts have been issued across several regions of England

iStock

England faces widespread heat alerts and hosepipe bans amid rising temperatures

Highlights:

  • Amber heat health alerts in place for large parts of England
  • Hosepipe bans announced in Yorkshire, Kent and Sussex
  • Temperatures could reach 33°C over the weekend
  • Health risks rise, especially for elderly and vulnerable groups

Heat warnings in effect as UK braces for another hot weekend

Amber heat health alerts have been issued across several regions of England, with temperatures expected to climb to 33°C in some areas over the weekend. The UK Health Security Agency (UKHSA) activated the warning at 12 pm on Friday, with it set to remain in place until 9 am on Monday.

The alerts cover the East Midlands, West Midlands, south-east, south-west, East of England, and London. Additional yellow alerts were issued for the north-east, north-west, and Yorkshire and the Humber, starting from midday Friday.

Keep ReadingShow less
Essex ladybird invasion

One of the largest gatherings was filmed on a beach at Point Clear

Dee-anne Markiewicz / SWNS

Swarms of ladybirds invade Essex coastline amid soaring temperatures

Highlights:

  • Ladybird swarms reported across Essex and Suffolk coastal towns
  • Hot weather likely driving the sudden surge in population
  • Sightings include Point Clear, Shoebury, Clacton and Felixstowe
  • Similar outbreaks occurred in 1976 during another hot UK summer

Sudden surge in ladybird numbers across the southeast

Millions of ladybirds have been spotted swarming towns and villages along the Essex coast, with similar sightings stretching into Suffolk. Residents have reported unusually high numbers of the red and black-spotted insects, particularly near coastal areas, with the recent hot weather believed to be a major contributing factor.

One of the largest gatherings was filmed on a beach at Point Clear, a village near St Osyth in Essex, where the insects could be seen piling on top of each other on driftwood and plants.

Keep ReadingShow less
Kapil Sharma

Kapil Sharma’s Canada cafe shot at days after opening

Instagram/ginnichatrath

Kapil Sharma’s Canadian café targeted in shooting, Khalistani terrorist cites mockery of Nihang Sikhs as motive

Highlights:

  • Shots were fired at Kap’s Café in Surrey, Canada, owned by comedian Kapil Sharma, just days after its opening.
  • Khalistani extremist Harjit Singh Laddi, linked to banned group BKI, claimed responsibility.
  • The motive cited was an old comedy segment from The Kapil Sharma Show that allegedly mocked Nihang Sikhs.
  • No injuries were reported; Canadian authorities are investigating the incident.

Comedian Kapil Sharma’s recently launched Kap’s Café in Surrey, British Columbia, was the target of a shooting in the early hours of 10 July. Though no one was harmed, the property sustained significant damage. A known Khalistani extremist, Harjit Singh Laddi, has claimed responsibility for the attack, citing perceived religious disrespect on The Kapil Sharma Show.

 Kap\u2019s Cafe in Surrey  Kap’s Cafe in Surrey was struck by gunfire late at night with staff still insideInstagram/thekapscafe_

Keep ReadingShow less
Police probe hate crime over migrant effigies bonfire in Northern Ireland

Models depicting migrants wearing life jackets in a small boat alongside two banners reading 'Stop the boats' and 'Veterans before refugees' are displayed on top a bonfire in Moygashel, Northern Ireland, on July 9, 2025. (Photo by PETER MURPHY/AFP via Getty Images)

Police probe hate crime over migrant effigies bonfire in Northern Ireland

POLICE in Northern Ireland have launched a hate crime investigation after a bonfire topped with effigies of migrants in a boat was set alight in the village of Moygashel, County Tyrone.

The incident, which took place on Thursday (10) night, has drawn widespread condemnation from political leaders, church officials, and human rights groups.

Keep ReadingShow less
Navratri festival in Wembley

A similar event held at the same site last year resulted in a planning enforcement notice being issued due to complaints of noise and disturbance.

Getty Images

Navratri festival in Wembley faces objections

A PROPOSED 10-day Hindu festival in Wembley, north London, has drawn objections over concerns about noise and disruption in the area.

Asian Events Media (AEM) has applied to Brent Council to host the Navratri celebration at Alperton Studios from September 22 to October 1, according to The London Standard.

Keep ReadingShow less