As per the reports, the biggest retailer, Tesco, forecast full-year profit at the lower end of its previous guidance, blaming uncertainty over the worsening cost-of-living crisis impacting consumer spending. Tesco said on Wednesday that customers were consistently changing their shopping habits to save money.

The group now expects retail adjusted operating profit in fiscal 2022-2023 of between EUR 2.4 billion and EUR 2.5 billion. In response to the pressures, Tesco said that the company is seeing more of its customers buying own-brand products and more frozen food. Amid rising costs, the company has been battling to keep prices down, with adjusted profits falling 11.5pc in the year’s first half, partly driven by cost inflation.

Previously, it had forecast EUR 2.4 billion to EUR 2.6 billion, down from the EUR 2.65 billion made in 2021-22. Tesco’s shares were down 2 per cent at 0812 GMT, extending 2022 losses to 29 per cent. Nevertheless, most analysts consider it best placed amongst Britain’s major supermarket groups to navigate the downturn due to its big buying power.

Tesco plans to freeze prices on more than a thousand products till next year. Jason Terry, UK chief executive, stated that times are tough for many customers, particularly as Britain is heading towards winter. Monthly industry data has shown Tesco consistently outperforming its biggest rivals, Asda, Sainsbury’s, and Morrisons, based on a value basis.