Tesco gets PR and share price boost from row with Unilever

London

TESCO appeared to emerge victorious from a pricing row with Unilever on Friday, with its shares rising 5 per cent and analysts saying Britain's biggest retailer had scored a public relations coup by casting itself as the consumer's champion.

Though details of the agreement between the supermarket group and one of its main suppliers were not disclosed, analysts said Unilever had probably at least partially backed down in its bid to raise prices to compensate for a plunge in sterling following Britain's vote to leave the European Union. "For the first time in many years, Tesco is coming across as the consumer champion and in the popular press is being reported as the company fighting to keep prices low for shoppers. This is good news for Tesco," said HSBC analyst David McCarthy, who has a "hold" rating on the stock.