Tesco has released its interim results for the first half of 2023, revealing strong performance in sales and market penetration.

The supermarket chain has reported retail like-for-like sales up 7.8%, with much of that driven by the UK and Republic of Ireland. As a result, it is adjusting forecasts for its operating profit to be between £2.6-£2.7bn. It had previously forecast £2.5bn.

And while Tesco is aggressively pursuing its ‘Save to Invest’ programme of cost-saving methods, its chief executive Ken Murphy said its marketing strategy is not impacted: “I don’t see marketing as a cost. I see it as an investment. We obviously challenge ourselves to optimise our marketing and make sure we get the best bang for our buck, but we don’t see it as a cost line to save money from.”

Its retail operating profit is up 13.5% on a constant basis, reaching £1,417m, despite a significant decline in the performance of its Central European branches as a result of price pressures and inflation in Hungary.

In the call accompanying the results, Murphy cited the chain’s focus on price matching and value via its Clubcard scheme as being at the heart of its success. “We know how challenging it is for many households across the country as they continue to grapple with the ongoing cost of living pressures,” he said. “We’ve worked hard to make sure our offer is as competitive as possible, and during the half we cut prices on around 2,500 products with an average cost saving for customers of around 12%.”

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