Iceland - comment

Tesco released its Q1 numbers this morning, and the CEO is quoted saying “we are seeing some early indications of changing customer behaviour as a result of the inflationary environment. Customers are facing unprecedented increases in the cost of living and it is therefore even more important that we work with our supplier partners to mitigate as much inflation as possible.” This corresponds with a 1.5% topline decline, however, the comparable year was impacted by covid. More importantly, despite the inflationary environment, Tesco’s are maintaining their guidance for FY23, highlighting that the inflationary pressures are likely to be passed on to the end consumer.