By Riad Beladi – International Supermarket NewsTesco, Britain’s largest supermarket chain, has raised its annual profit outlook following a stronger-than-expected first half of the year, buoyed by hot summer weather, resilient consumer demand, and strategic investment in value and service. The retailer now expects adjusted operating profit for the 2025/26 financial year to come in between £2.9 billion and £3.1 billion, an upgrade from its previous guidance of £2.7–£3.0 billion. The new forecast places Tesco’s earnings firmly on course with last year’s figure of £3.13 billion. Competitive Pressures RemainDespite the upbeat results, Tesco acknowledged that the “competitive intensity remains elevated” across the UK grocery sector. While price competition remains fierce, loyalty-driven incentives and digital retailing are becoming just as critical to securing market leadership.