Tesco's profits confirm dominance

Tesco is set to face further claims it is unfairly dominating the marketplace this week as it announces record half-year profits of more than £1 billion.The supermarket giant is due to report a rise in pre-tax profits of 12 per cent to more than £1.125bn. This means it is now raking in nearly £35 a second, or £1 of every £7 spent on groceries in the UK. The news will add fuel to claims made by MPs and campaign groups that a “Tescopoly” situation has emerged, coming as the Competition Commission continues to investigate the UK’s richest retailer for unfair domination over independent counterparts. Commenting on Tesco’s financial results, Andrew Simms, policy director at the New Economics Foundation, said: “This is clear evidence of market failure. Tesco is like some invasive predator that kills off other species. They put everybody out of business and there has to be a curb on their dominance by our regulators.” However, Tesco chief executive Sir Terry Leahy is expected to counteract these claims at a briefing tomorrow (Tuesday) with the news that, while other sectors are seeing vast job losses, the retailer will create thousands of jobs through new openings and expansions. (even though Tesco themselves are making supply chain staff redundant!)