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Tesco says coronavirus panic buying has cost it nearly £1 billion

Tesco says sales jumped by 30% as coronavirus panic buying cleared its supply chain of certain items, with sales jumping by around 30%.

The supermarket giant said supply has now stabilised across the group and "more normal sales volumes are being experienced".

It has recruited 45,000 extra staff to cope with soaring demand.

Dave Lewis, chief executive of Tesco, said: "Covid-19 has shown how critical the food supply chain is to the UK and I'm very proud of the way Tesco, as indeed the whole UK food industry, has stepped forward.

"In this time of crisis we have focused on four things; food for all, safety for everyone, supporting our colleagues and supporting our communities.

"Initial panic buying has subsided and service levels are returning to normal. There are significant extra costs in feeding the nation at the moment but these are partially offset by the UK business rates relief."

Tesco estimated the increase in demand cost it £650-925 million, including significant increases in payroll and distribution needs, but that should be offset by growth in food sales and 12 months of UK business rates.

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