Money blog: Tesco aiming to take customers from two rivals with Finest expansion (2024)

Tesco is targeting customers from Waitrose and Marks & Spencer with plans to boost sales of its upmarket Finest own label range by £1bn.

Ken Murphy, the supermarket's CEO, said he was "very conscious" of the importance of a premium offering.

Sales of Finest items reached £2bn in the year to February 2023. But Mr Murphy is now targeting a 50% increase.

"We genuinely believe that our intrinsic [food] qualities are every bit as good as anything you would get at Sainsbury's and increasingly out of Waitrose," he told the Financial Times.

"[With] M&S we probably still have a bit of work to do."

Premium supermarket shopping is fiercely competitive at the moment - rising 12% in the year to 9 June, according to data group Kantar - despite surging food bills.

Waitrose last month relaunched its premium own label No.1 and says it "sets a new benchmark for quality". M&S's food division, which emphasises welfare in its product range, recently posted soaring annual sales.

Elsewhere, Asda revealed its new Exceptional range in May and Sainsbury's has added to its premium offering. At the discount end of the market, Lidl has had success with its Delux range.

In his FT interview, Mr Murphy rejected the idea premium products could simply be standard products repackaged.

He said they were concocting new products at a development centre in Welwyn Garden City.

Jamie Robinson, Tesco's executive chef, who used to work for Michelin-starred chef Marco Pierre White, said: "This is restaurant-quality now."

He said there had been "a massive step change in our product culture, from an innovation point of view".

Tesco has a 27.7% share of the UK grocery food market with sales of more than £60bn - and the Finest range is just over 3% of that.

Basically… bankruptcy is a legal status for someone who can't repay a debt they owe.

Someone who is declared bankrupt is not liable for most of their debts and doesn't have to pay them.

The legal proceeding, which can also be used by businesses, offers a fresh start for people who have gotten overwhelmed by their debt - but not without consequences.

So how can you go bankrupt - and how might it affect you in the future? We've broken down the basics here...

The bankruptcy process

Someone with a debt they can't afford to pay back anymore can apply to become bankrupt themselves.

The application itself is costly at £680. It can be filled out online.

An adjudicator with the Insolvency Service will then take a look at the application and decide whether to approve it. They've got up to four weeks to do this, but it doesn't usually take that long.

The person is made bankrupt on the day their application is approved, and their bank account is frozen immediately.

After this, someone called an official receiver will take control of the person's money and property. Following an interview with the bankruptee, they'll be responsible for using their assets to pay back creditors.

The process ends with the person being discharged from bankruptcy after a year - so long as they've cooperated with the official receiver.

How are assets used to pay debts?

If someone has valuable assets, such as a house, car, jewellery or any other item seen to be excessive in value, these are likely to be sold in order to pay down some of the debt they owe.

If the car isn't worth much or is deemed essential, they might not need to sell it.

Similarly, if the equity in their home is less than £1,000 they might be able to keep it. Someone might be ordered to downsize their property in order to raise the money needed.

Funds will first be spent on the fees and costs of the bankruptcy, then the creditors will receive the balance.

Possessions that people need for daily living, such as furniture, clothing, bedding, essential household equipment and work tools, won't be taken.

What debts are not covered by bankruptcy?

Even when declared bankrupt, there are certain debts that you will still have to pay.

These include:

• Student loans
• Maintenance payments and child support
• Court fines
• Any payments under a court confiscation order
• Debts due to fraud
• Any debts taken out after the bankruptcy order is made

How will bankruptcy affect me?

Though bankruptcy wipes most debts, it can affect many other aspects of life.

Aside from the potential loss of assets, the process can ruin a person's credit - and rebuilding it may take years. This could have a knock-on impact on other financial moves such as getting a mortgage, for example.

Energy or phone service providers might want someone to have a guarantor, security deposit or prepayment meter in place as financial security before taking out a contract with them.

Business owners who go bankrupt have to hand over the rights to their firm to the official receiver after going bankrupt - and may end up losing it.

Bankruptcy can also make it harder to find a job in certain industries, such as the civil service or police, and an employer might place restrictions on someone's work as a result.

What options are available before bankruptcy?

Bankruptcy isn't the only option for people who are overwhelmed by their debts.

In England and Wales, the government's Breathing Space scheme offers borrowers temporary protection from lenders for up to two months while they get advice and make a plan.

There's also the option of speaking to a credit counselling service and coming up with a debt management plan, with them acting as a mediator with the lender.

An individual voluntary arrangement is another option - this is an agreement with the creditor that aims to pay back as much money as possible while still being fair to the person in debt.

Read other entries in our Basically series...

Spotfiy has discreetly introduced a cheaper plan that can save users up to £24 a year.

Its new "Basic" plan costs £1-£2 less a month than other subscriptions.

Users will need to forgo audiobooks, while still enjoying ad-free listening, downloads, high-quality audio and podcasts.

Most of Spotify's Premium plans (not including Student) currently include 15 hours of audiobook listening.

Current Spotify Premium members were all moved onto these plans automatically after price increases in April 2024.

The prices of these plans are: Individual Premium (£11.99 per month), Family Premium (£19.99 per month) and Duo (£16.99 per month).

The new Basic plan - only available to existing Premium subscribers - includes all the regular perks, but without the 15 hours of audiobooks.

The prices of these plans are: Individual Basic (£10.99 per month), Family Basic (£17.99 per month) and Duo Basic (£14.99 per month).

Student plans remain at £5.99 per month, and there is no Basic Student available currently.

To switch plans, log into Spotify via a browser (you can't use the app). Go to your Profile, then Account, Subscription and Available plans.

Find Basic option, select your plan and click Update subscription.

By James Sillars, business reporter

A strong US stock market rally today is being described as a "Trump bounce".

Market commentators credited the prospect of a big sympathy vote for the former president-turned presidential hopeful after the failed assassination attempt at the weekend.

As such, investors were pricing in a greater chance of him winning a second term in November.

The S&P 500 and the Dow Jones Industrial Average both hit new record highs as hopes grew for investor-friendly policies ahead, such as extended tax cuts and looser regulation.

Trump Media & Technology Group was one of the most actively traded shares.

They were up 34%.

On this side of the Atlantic, the FTSE 100 was on course to close about 0.8% down.

Burberry was the biggest faller, down 16%, following a weak trading update that prompted the luxury brand to cancel is dividend.

The Welsh government is considering restricting free refills of sugary soft drinks in restaurants - potentially impacting fans of Nando's, Five Guys, Pizza Hut and Popeyes.

It has launched a consultation in an attempt to encourage people to make "healthier choices".

Eluned Morgan, Labour cabinet secretary for health and social care, said more than 60% of the population is "living with obesity or overweight".

She is proposing a "package of measures to improve the health of our food environments across Wales".

It is proposed that retailers be prohibited from placing HFSS products (high in fat, salt and sugar), in areas such as aisle ends and checkout/queueing areas.

There could also be restrictions on promotions.

Restaurants would be exempt from price and location promotions, "except in the case of free refills of sugar-sweetened beverages".

It is being proposed that "failure to comply with an improvement notice" could result in the "option of issuing a fixed monetary penalty of £2,500".

Grandparents in Sweden are eligible for paid parental leave under a new law aimed at extending childcare benefits beyond children's immediate family.

The programme, launched at the start of this month, allows parents to transfer a portion of their parental leave days to other caretakers, including grandparents.

The law enables single parents to transfer up to 90 days of paid leave to other caregivers and a parental couple to transfer up to 45 days, according to the Swedish government's Social Insurance Agency.

This comes 50 years after the country became the first ever nation to introduce paid parental leave that could be split between both parents - and many countries, including the UK, copied.

Dozens of tonnes of fake olive oil worth more than €900,000 (£757,000) have been seized in Italy.

Authorities confiscated a total of 71 tonnes of the "oily substance", with 42 tonnes of it boxed and ready to be sold as Italian extra virgin olive oil, one of Italy's biggest national police forces said.

Seven people were allegedly behind the counterfeit goods, with the Carabinieri accusing them ofcriminal conspiracy, adulteration of food substances intended for marketing, fraud in public military supplies and adulteration of food for export.

"During the operations, several boxes and warehouses used by the suspects were searched, seizing 71 tonnes of oily substance, contained in plastic tubs and cans of various sizes," it said.

Equipment used for packaging and distribution, including 1,145 customs excise duty stamps and labels claiming the oil was "extra virgin", have also been taken by officers.

The investigation comes as the price of olive oil continues to soar in the UK - the cost of a 500ml bottle has risen from £6.16 in May 2023 to £8.60, according to the latest data.

The Money team has previously found a bacterial disease, criminal gangs, changing weather patterns and Brexit have all played a part in the increases.

You can read more about our olive oil investigation from earlier this year below...

ByBrad YoungandKatie Williams, from the Money team

As we reported in our markets update below, the pound has held its recent gains against the dollar, with one pound buying $1.2982. It's also at a near two-year high against the euro - £1 equals €1.1912.

So, this could be the perfect time to buy your holiday money.

Recently, we spoke with three travel experts to find out when, where and how to pay abroad in order to make the most of your pound.

CREDIT CARD

"Thecheapest way to spend overseas is often on plastic, if you've got the right plastic," said James Jones, head of consumer affairs at Experian.

"Using credit and debit cards can be a great way to get the very best exchange rates."

He said rates offered by currency exchange shops are usually "much less attractive" than those offered on some cards, which were much closer to the rates the banks use themselves.

Fees could wipe out any gains

But it's essential to be aware of things like non-sterling transaction fees, cash withdrawal fees and credit card interest.

So shop around for a card with travel rewards, Mr Jones said - and do this before your trip.

"You probably need to give yourself, ideally, six weeks."

Extra protection

When you book a trip between £100 and £30,000, try and pay for some of it on a credit card to get "extra protection" under section 75 of the Consumer Credit Act, said Mr Jones.

That means the card provider is jointly responsible with the retailer if something goes wrong, such as arriving at a hotel only to find it has closed down.

If you are using a credit card, make sure you are can pay it off in full to avoid interest charges, said Sean Tipton from the Association of British Travel Agents (ABTA).

One trap you must not falling into

An increasingly common trap when paying with card (credit or debit) is being presented with the option to pay in the local currency or in pounds, said Mr Jones and Mr Tipton.

While paying in sterling might "seem like a wonderful convenience" you will ultimately be paying "quite a bit more for the purchase", Mr Jones said.

If you pay in pounds, the local retailer's bank sets the exchange rate, but if you pay in the local currency, your UK bank sets the rate.

DEBIT CARDS

"Some service providers don't apply fees for overseas use on their regular UK debit cards," says Moneyfacts - but you must always check as some incur big fees.

Alternatively, "some service providers offer specialist travel debit cards that don't impose non-sterling transaction fees and cash withdrawal fees".

PREPAID TRAVEL CARDS

If you're looking to avoid a credit check, prepaid cards can be loaded with multiple currencies and work like a debit card, without being connected to your bank.

"Typically, prepaid travel cards will offer competitive or even no charges for foreign usage, which can make them a cheaper alternative to using a normal credit or debit card while on holiday," says MoneyFacts.

One of the most popular prepaid cards, Revolut, uses its own exchange rates, which might not always be the best you can find - and while it is fee free on weekdays, there are charges at weekends, so do your research.

Also be aware - prepaid cards do not offer purchase protection like a credit card and aren't regulated by theFinancial Conduct Authority.

CASH

"Don't rely solely on a card - it can backfire on you if you do," said Mr Tipton.

Some taxis only take cash, leaving you to face hefty charges withdrawing from an ATM.

In some countries, like Argentina, it can be difficult to get money out of ATMs without a local bank account, Mr Tipton said.

Mr Jones added: "If you're in a very remote part of the world that actually doesn’t have many ATMs and maybe where cash is king, then that might dictate what you need to do."

Where and when to get cash

"I'd strongly recommend [to] get some cash out in the UK," said Mr Tipton.

It can be difficult to find a bureau de change in some developing nations, and ATMs have "started introducing quite hefty charges" across the board, he said.

The exceptions are countries with really high inflation rates, where it may make more sense to get cash out when you arrive, he added.

When to exchange currency really depends on the destination, saidLaura Plunkett, head of travel money at the Post Office.

"Exchange rates change frequently, so if you have time, do your homework and lock in a rate when it is good."

What is a good exchange rate for Europe?

Some 80% of British holidays abroad take place in the Eurozone, said Mr Tipton.

The rate has remained "fairly stable", but if you see the pound increasing in value that may be the time to buy a larger amount of Euros for a couple of years in advance, he added.

Mr Tipton said 1.2 to the pound is a "pretty healthy" time to buy, but "it is a bit of a lottery".

Every year the pound gets stronger against the South African rand, and the same in Argentina, where the peso is "unbelievably weak", Mr Tipton suggested.

In store or online?

"Most online suppliers will insist on a minimum order value that might be too high for some people, and you'll have to make sure that you're home for when it's delivered," said Ms Plunkett.

"But typically, rates are better online if that's an option for you."

By Sarah Taaffe-Maguire, business reporter

Burberry has ousted its chief executive and announced the appointment of a new CEO this morning.

The move came as the luxury British fashion brand scrapped shareholder payments and reported a "disappointing" financial performance and a "more challenging than expected" business transition.

The company said it expected to make a loss in the first half of the year if current trends persist, as previously identified weakness had "deepened".

Taking up the reins is former Michael Kors boss Joshua Schulman.

Following the update, Burberry's share price was down 12.5%.

The index Burberry is a constituent of, the FTSE 100, was down 0.4%, as was the larger FTSE 250 which comprises more UK companies listed on the London Stock Exchange.

The price of oil, as measured by a barrel of Brent crude, is slightly lower than it has been for most of the past four weeks at $84.79 a barrel, but it is still above May and June prices.

The pound has held its gains against the dollar, with one pound buying $1.2982. It's also at a near two-year high against the euro - £1 equals €1.1912.

After the assassination attempt on former president Donald Trump, the cryptocurrency Bitcoin enjoyed another steep rise, though is still below the all-time high reached in March.