The changes cost 892 million pounds in Britain alone, with around a quarter of the extra spend expected to recur this year.
Group revenue excluding fuel rose 7% to 53.4 billion pounds, but pretax profit fell 19.7% to 825 million pounds.
At a retail operating level, profit of 1.99 billion pounds beat forecasts.
FILE PHOTO: A logo of Tesco is pictured outside a Tesco supermarket in Hatfield, Britain October 6, 2020.
UBS said that result would be about 4%, or 100 million pounds, lighter than consensus expectations.
Ken Murphy, “, ” Murphy, Peter Cziborra, Murphy
Tesco, Britain’s, REUTERS, UBS, Sainsbury’s, Morrisons, Aldi
Britain, Hatfield , Britain, Asda