Tesco will emerge stronger from the cost of living crisis but shoppers are not so lucky

Its profits will take a hit but Tesco can weather a storm that threatens to blow over its customers, says James Moore

The supermarket more than doubled pre-tax profits and increased its already formidable market share (AFP/Getty)

Set aside the grim economic backdrop for a moment and Tesco’s full year results paint a picture of a slick machine; a high-end electric car with a fully-charged battery.

But even a machine as powerful as this one can’t escape that backdrop. Tesco’s business puts it at the sharp end of the cost of living crisis and the surge in inflation that is causing it.

It faces across-the-board cost pressures; from suppliers, from the need to increase the pay of its low-waged staff, from the sharp increase in fuel and energy prices.