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First-half sales rise 2% to £33.8bn, helped by strong trade online, as retailer says it is making more delivery slots available

• Supermarket shake-up: why Asda or Morrisons could vanish

• Business live – latest updates

Tesco has raised its profit outlook as it expects households to splash out this Christmas – despite buying less alcohol – as they shrug off “uncertainty” over the Iran war.

The UK’s biggest grocer said sales rose just 2% to £33.8bn in the 26 weeks to 29 August, but underlying profit was up 6.5% to £1.8bn.

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Tesco predicts a low-alcohol ‘healthier’ Christmas

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