The company is banking on rising sales, allow

The company is banking on rising sales, allowing it to cut 1.5bn of costs.The supermarket also needs strong results to help it persuade shareholders to back its attempt to buy wholesaler Booker.Last month, one of its biggest shareholders said it had “major concerns” about the 3.7bn bid, saying it was overpaying.Tesco said the deal would improve its recovery plans.The supermarket giant’s pension deficit more than doubled from 2.6bn to 5.5bn after higher inflation, said Hargreaves Lansdown analyst Laith Kalaf.”The supermarket is facing the prospect of a rise in pension contributions because its scheme valuation is rather inconveniently taking place now, when interest rates are low and inflation is rising, both of which will serve to magnify the deficit,” he said.Kantar Retail analyst Ray Gaul said Tesco can “successfully put the accounting scandals of the past behind them having settled legal affairs”.”Now, Tesco will begin to fight all of its battles on the front foot,” he said.Upcoming “battles” include regulatory battles over the proposed Booker deal.Suppliers raising prices to cope with increased costs will be another test, Mr Gaul said.

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