Unions accuse Tesco of profiteering as earnings soar – are they right?

Chief executive Ken Murphy says the grocer is run with ‘all stakeholders’ in mind, but poorer customers are still badly struggling while shareholders enjoy rich rewards, says James Moore

Extra for Tesco: Supermarket has posted a sharp rise in profits for the past year (Joe Giddens/PA)

Unite general secretary Sharon Graham’s response to Tesco’s announcement of a £2.3bn pre-tax profit – more than double the previous year’s number, and its best result for more than a decade – was furious.

“Tesco is raking in mountains of cash while families struggle to put food on the table because of sky-high prices. Many companies have used the cost of living crisis to grab excessive profits,” said Graham. “There is an epidemic of profiteering in our economy – the government has been missing in action and failed to curb it.”

Tesco’s headline numbers seem to suggest that, while a large cohort of customers is struggling to afford the basics, shareholders have been feasting on its Finest range.