Stock Spotlight: Every little helps as Tesco cuts costs to deal with inflationary pressures

Working against Aldi and Lidl

Tesco’s results earlier this month saw the supermarket cut projects for full-year profits, while warning that inflation was still a significant concern for the FTSE 100 company.

James Warner, equity analyst at Mirabaud Equity Research, said: "It is hard to imagine a more difficult operating environment for Tesco at the moment." Chris Beckett, head of equity research at Quilter Cheviot, described the firm's results as "mixed", stating that "it is always good to see sales growth", but recent share losses following a ‘good' pandemic and the margin decline are concerns. "The main positive story for the stock is the strong free cashflow that is funding a high dividend and ongoing share buyback - the update reaffirmed this argument," he added. Meanwhile, James d...