The impacts of higher prices are being felt in the Tesco boardroom as profits have fallen despite an increase in sales.
High energy and labour costs, along with food inflation at 17.5%, have hurt the company’s earning power.
But the retailer also announced a reduction in the price of milk for the first time since May 2020. The cost has dropped from 95p to 90p a pint and from £1.30 to £1.25 for two pints. Prices on more than 1,000 everyday items will be frozen until early July.
The chain also announced it will buy back another £750m worth of shares in addition to the £1bn it has already bought back.
It reported profits of £2.63bn, down from £2.82bn the year before despite revenues rising to £65.7bn over the year, an increase from £61.3bn a year ago.
“Our results reflect our continued investment in delivering great value and quality for our customers, whilst at the same time looking after our colleagues,” chief executive Ken Murphy said.
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“This is despite unprecedented levels of inflation in the prices we have paid our suppliers for their products, and the cost of running our own operations.”
At the same time Tesco’s preliminary full-year results said it is “at the most competitive we have ever been” and Tesco prices were “meaningfully lower” than 17.5% food inflation rate.
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Mr Murphy also said inflation would fall later this year, as oil and grain prices fall, but the price of rice and protein would stay high.
The retailer is pushing suppliers for price cuts and has a team to closely monitor the costs facing suppliers, The Sunday Times reported on Sunday.
In an effort to save £1bn by February 2024 hundreds of manager roles across shops have been cut and all remaining food counters and hot delis have been closed.
Increases in delivery costs are to be introduced. Both the minimum spend and the fee for ordering groceries online will rise from 2 May.
A £4 charge is applied when the £40 home delivery minimum spend threshold isn’t reached. The minimum spend will rise to £50 next month and the fee for not meeting it will top £5.
Tesco still enjoys a 27% market share, the largest of any supermarket, despite increasing competition from low-cost German retailers Aldi and Lidl.
The billions of profits made by Tesco in a cost of living crisis have come in for criticism.
Unite general secretary Sharon Graham said they are “another example of excessive profiteering fired up by astonishing corporate greed”.
“It’s this rampant profiteering which is driving inflation, and cranking up the cost of living crisis for workers and their families,” she said.
“How can it be that at a time when millions are struggling to feed their families Britain’s biggest supermarket is profiteering as never before.”
Greater Manchester Police makes ‘improvements’ in treatment of women including new rules on strip searches – but questions remain after Sky News investigation
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9:09
From July 2023: Are women safe in custody?
A report today by the Greater Manchester mayor’s office welcomes the introduction of new measures including additional training for police officers dealing with domestic violence victims.
However, many victims are unconvinced. One such is Sophie, not her real name, telling her story for the first time.
She tells Sky News that even after the Baird Inquiry found her arrest was “unlawful” and the chief inspector called her treatment “appalling”, the police complaints department subsequently described the arrest as “acceptable”.
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Sophie’s experience was investigated by Dame Vera alongside other women who Sky News spoke to last year.
She was arrested at 3am in the summer of 2022, and detained for 11 hours following a trivial complaint made by her ex-partner. Her accuser was designated by the police as a highly violent, domestic abuse perpetrator.
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Even so, Sophie was arrested at her home in the middle of the night after her abuser alleged she had broken his car wing mirror, 14 months previously, and that she had bruised his arms on an occasion when he had strangled her.
‘They knew what I was trying to protect myself from’
The man making the allegation was someone who had punched, strangled, pressed his thumbs into Sophie’s eyes and locked her up in the house.
Sophie told Sky News: “He’s got a history of domestic violence; he’s got a history of being incarcerated. They knew what I’d gone through, they knew what I was trying to protect myself from.
“I was in contact regularly with domestic violence support workers who were meeting with police liaison officers. They knew that I had the locks changed. They knew I had an alert on the house and my phone.”
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3:15
From August 2023: ‘I was gaslit, I was stonewalled,’ says Zayna Iman
Sophie describes the police arrest as “an extension of his coercion”. She later refused to accept a police caution and was charged with the offence of damaging a wing mirror before a judge threw the case out saying it was not in the public interest.
At a press conference in July this year, Dame Vera said: “I tell you ladies and gentlemen, if someone tried to strangle me, I’d probably bruise his arms as well.”
She said the arresting officers had “locked away their brains” and criticised the custody sergeant who had logged his justification for the arrest as “to protect a vulnerable person”, in reference to the violent man.
A series of ‘failures’
At that time, GMP Chief Constable Stephen Watson said he was “appalled” by Sophie’s treatment.
He told Sky News: “It’s a systemic failure, a leadership failure, a process failure. I do think in individual circumstances it may be a failure of experience.”
And yet, one month after this, the police complaints department wrote to tell Sophie “there were sufficient grounds for your arrest”. The letter told her: “The service provided by the police was acceptable.”
Only after Sophie revealed that her case was part of the Baird Inquiry did the police retract these findings.
In a statement, GMP told Sky News: “The outcome Sophie was provided was incorrect. Having reviewed the handling of the complaint, our head of professional standards gave Sophie a personal apology and we are ensuring there is a full reinvestigation.
“Complaints relating to the Baird review – including Sophie’s – are subject to a fair and thorough examination, without fear or favour, by our Professional Standards Directorate.
“Where an investigation finds there to be a case to answer, we will ensure officers face disciplinary proceedings.
‘1,500 more domestic abuse survivors now getting justice’
“We are working hard to ensure that the people of Greater Manchester – particularly women and girls – can have confidence in their police force. This includes providing trauma-informed training for officers and getting better outcomes for victims – with 1,500 more domestic abuse survivors now getting justice compared to three years ago.
“Our communities can have confidence that the force is robust in maintaining good order and discipline. Those not fit to serve are being removed from GMP with more than 100 officers dismissed on the Chief Constable’s watch.”
However, Sky News has been told that most complaints relating to the Baird Inquiry are subject to ongoing investigation and, so far, no officers have been disciplined or dismissed.
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4:00
From July: Mark Dove says he was ‘left naked in cell for hours’
In response to the Baird Inquiry, GMP now has a dedicated female welfare officer in its custody suites and is soon to introduce a new independent oversight panel to scrutinise arrests.
According to the mayor’s office, 24 of the 26 recommendations from the inquiry have been implemented.
Mayor of Greater Manchester Andy Burnham said:“This is a landmark moment in our quest to improve the safety and treatment of women across Greater Manchester.
“It is clear that there is still progress to be made. The deputy mayor and I will continue to hold up a mirror to unacceptable practices wherever we find them.”
Deputy mayor Kate Green added: “While the implementation of these recommendations to date is welcome, it is essential that the improvements brought about are maintained and indeed built upon, and on behalf of the mayor I will continue to scrutinise GMP as it makes progress in these areas.”
However, Sophie feels let down and says if she was in an abusive relationship again, she would think twice about going to the police.
“I wouldn’t just be OK with reporting something now, I would look at the consequences of me doing that, and what could happen as a result of me doing that, and how they would treat me,” she said.
“It’s going to take me longer to get over what happened to me that night in being arrested and being locked up than getting over being slapped or punched.”
Former victims’ commissioner Dame Vera Baird and Greater Manchester mayor Andy Burnham will be speaking to Wilfred Frost on Sky News Breakfast from 7.30am this morning.
An international manhunt is under way for the husband of a murdered woman, whose body was found in the boot of a car.
The body of Harshita Brella was found in east London on Thursday, tens of miles away from her home in Corby.
On Sunday, Northamptonshire Police said they were looking for Pankaj Lamba – who they believe has left the country.
Sky News understands she had been under the protection of a court order designed for victims of domestic abuse.
“Our inquiries lead us to suspect that Harshita was murdered in Northamptonshire earlier this month by her husband Pankaj Lamba,” said chief inspector Paul Cash.
“We suspect Lamba transported Harshita’s body from Northamptonshire to Ilford by car.”
“Fast track” enquires were made after the force was contacted on Wednesday by someone concerned about Ms Brella’s welfare. After she failed to answer the door at her home in Skegness Walk, Corby, a missing person investigation was launched.
Her body was found inside the boot of a vehicle on Brisbane Road, Ilford, in the early hours of Thursday morning.
A post mortem – conducted at Leicester Royal Infirmary on Friday – established she had been murdered.
More than 60 detectives are working on the case, with lines of enquiry including going house to house and property searches, as well as looking at CCTV and ANPR.
“We are of course continuing to appeal for any information that will help us piece together exactly what happened as we work to get justice for Harshita,” said chief inspector Cash.
“I urge anyone listening to or reading this statement, that if you saw anything suspicious in the past week or have any information, no matter how small, please contact us. We would always rather receive well-meaning information that turns out to be nothing as opposed to not receiving it all.”
Force referred to police watchdog
On Saturday, Northamptonshire Police said it had made a mandatory referral to the Independent Office for Police Conduct due to previous contact between the force and the victim.
Northamptonshire Police previously said officers had been conducting investigations at three locations: Skegness Walk and Sturton Walk in Corby and Brisbane Road, Ilford, where Ms Brella’s body was found.
East Midlands Special Operations Major Crime Unit (EMSOU) and Northamptonshire Police said they were working “around the clock to establish the circumstances behind her death, including the exact location and timeframe in which it took place”.
Speaking about the recreation, she said: “We’ve got leading experts in their fields who have been working on this for 10 years and so everything has been meticulously researched, meticulously evidenced, so you are seeing the most accurate portrayal of Richard III”.
A team based at Face Lab at Liverpool John Moores University created the avatar based on the reconstruction of Richard III’s head with the help of a craniofacial expert.
Experts from various fields helped put the pieces of the puzzle together, including speech and language therapy, dentistry, forensic psychology and archaeology.
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His voice has been created by Professor David Crystal, a leading linguist in 15th-century pronunciation. He admitted that it’s impossible to know exactly how he spoke, but this is as close as they will get.
The king was born in Northampton but spent a lot of his life in Yorkshire. His parents were also from the north of England.
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Vocal coach Yvonne Morley-Chisholm spent a decade researching how the monarch would have sounded. She worked with the actor Thomas Dennis who was chosen as his body and face were such a good physical match.
Speaking to Sky News, she said people will be shocked at how different he sounded compared with traditional portrayals of the king on stage and screen.
The coach and actor also examined the king’s letters and diary so that “as you pronounced a word that’s how you would write it”.
History fans at the unveiling were delighted with the accent, with one telling Sky News: “Northerners are known to be happy, positive, all those lovely qualities.”
Born in Northampton but a northerner through and through, technology has brought the king’s speech back to life