Covid costs take a bite out of Tesco profits
Protective measures in stores and the decision to hand back business rates relief hit the bottom line
14 April 2021 • 7:36am
Tesco’s annual sales were boosted by the boom in online shopping, but Covid-related costs and the repayment of business rates relief dragged down annual profits.
It posted a 7pc increase in overall sales to £53.4bn from £49.9bn for the year to the end of Feb 27, but pre-tax profit dropped by almost 20pc to £825m from £1bn.
The chain was hit with £892m of Covid-related costs to keep stores and staff safe. It also handed back £535m of business rates relief.
Tamara tests out the Covid-safe changing room at John Lewis
Credit: Christopher Pledger
It’s 10.30am on Monday morning and I am standing barefoot in a John Lewis fitting room, shimmying myself into a pair of Levi’s ultra-high-rise Ribcage jeans.
This is not normally how I begin my working week, but it has been over a year since I was last in a fitting room, and now that we have to start thinking about bottom-half dressing again, I’ve found myself in dire need of some new denim.
I’m clearly not alone. There were around 50 people queuing outside the Westfield White City store before it opened at 10am, and a good number joined me in the womenswear department.