Tesco expects Euro 2024 sales boom -- but faces row over CEO pay

Tesco said it is set for a booming summer of sport today, though it does have to fend off a row about CEO Ken Murphy’s £10 million pay deal.

Britain’s biggest grocer today insisted it is still the cheapest full-line grocer, fending off competition from Lidl and Aldi to record another rise in sales.

And it expects to see sales of booze, picnic and bar-b-q food sizzle as Euro 2024 kicks off. Industry figures show shoppers have already stocked up, buying 33 million packs of beer and 9 million packs of sausages.

In the 13 weeks to May 25 Tesco sales rose 3.6% to £14.3 billion. In the UK alone they were up an even stronger 4.6%.

That suggests the consumer is more resilient than some analysts had feared, and that Tesco is getting its price offer right.

CEO Ken Murphy said: “Scotland’s game against Germany his evening kicks off a great summer of sport.”

Tesco expects strong sales on match days of beer and wine. It is also offering free blood pressure checks in-store.for those who find the football stressful.

Tesco’s market share is up a little to 27.6%. It claims to have been the cheapest of the major grocers for 19 consecutive quarters thanks to its Aldi Price Match, Clubcard Prices and Low Everyday Prices.

High food price inflation has been a serious issue for many months. There is now some hope that food inflation is at least slowing, good news for Labour, perhaps.

In April Tesco reported a 160% jump in profit to £2.3 billion on sales up 7.4% to £61.5 billion. Tesco profits this year should grow to at least £2.8 billion.

Murphy will face some heat at today’s AGM over his £10 million pay package.

Dan Howard, Head of Good Work at ShareAction, said:

“In a world where Tesco are making a £2.3 billion profit a year, paying those who keep the stores safe and clean the real Living Wage shouldn’t have to be asked for – it should be automatic.

“Unfortunately, Tesco are dragging their feet on taking the right steps to pay its third-party contracted staff the living wage.

Murphy said: “I absolutely accept that I am well paid.” His pay doubled from £5 million last year.

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club. said: “Tesco cannot afford to rest on its laurels. Aldi and Lidl continue to expand at a rate of knots, and the UK economy is not out of the woods, with an election looming. However, Tesco is in the strongest position it's been for many years and will look forward to the rest of the year with confidence."

Tesco shares rose 5p to 308p, which leaves the company valued at £21.3 billion.