Tesco wins the battle of the supermarkets – but are shoppers paying too high a price?

Britain’s biggest supermarket brought home the bacon (and the turkey) with a spike in sales over Christmas, writes James Moore. But as shoppers struggle with the cost of living, can bigger profits be justified?

Tesco has said its profits are set to surpass previous targets after strong Christmas sales (PA Wire)

Tesco gorged on festive treats over Christmas, putting on millions of pounds in the process.

The country’s biggest supermarket beat analysts’ forecasts, serving up a 6.8 per cent rise in sales over its festive trading period, which runs until 6 January, at stores that have been open for at least a year. The cherry on the top of a financially super-sweet festive cake came via a £50m upgrade to its annual profit forecast.

In its trading update, the group highlighted demand for its Tesco Finest range of premium products. Sales of those rose by a stunning 16.7 per cent, which tells us that a substantial number of shoppers were able to set aside the brutal rise in the cost of food over the last couple of years in favour of treating themselves over the festive period.