\nTesco profits are predicted to hit \u00a32.75bn when it announces its full-year results on Wednesday 13 April, as it is likely to face pressure to drop prices amid rising inflation and cost-of-living concerns.<\/p>\n
City analysts have estimated that the group’s operating profits will be in the region of \u00a32.75bn after Tesco bosses revealed that profits would be above expectations.<\/p>\n
The supermarket giant<\/a> currently boasts a 27.4% share of the grocery market<\/a>, according to market analyst Kantar.<\/p>\n City analysts expect Tesco to maintain this lead after a busy Christmas trading period meant it dominated across the grocery market, with all other Big 4 grocers – Sainsbury\u2019s, Asda and Morrisons – seeing their share decline.<\/p>\n Read more: In Pictures: Tesco’s Hot Cross Bun Caf\u00e9<\/a><\/strong><\/p>\n With inflation soaring and families struggling as the cost-of-living crisis begins to hit, it is likely that Tesco will face calls to reduce prices in line with low-cost competitors. The City will be keen to hear how the grocery giant intends to support its consumers<\/a> throughout this period.<\/p>\n UK households are set to be \u00a3900 worse off this year with the lowest earners disproportionately affected with a loss of up to \u00a31,300, according to a recent PwC report.<\/p>\n As a result, consumers are expected to reduce spending on both the weekly food shop and the smaller, mid-week ‘top-up’ shops.<\/p>\n Investment platform AJ Bell said Tesco may have some \u201cpricing power\u201d against cost inflation as a key provider of consumer staples and given its domination of the market.<\/p>\n AJ Bell\u2019s financial analyst Danni Hewson said: \u201cAt a time when inflation is a key concern, and customers will start to trade down or even buy less, this could be a useful part of Tesco\u2019s armoury when it comes to driving profits and cash flow and protecting profit margins.\u201d<\/p>\n