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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. Tesco 'battles' 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 anti-trust reviews over the proposed Booker deal. Suppliers raising prices to cope with increased costs will be another test, he says. The pound has substantially weakened since the UK's vote to leave the European Union in June, pushing up the cost of imports. The rate of grocery price inflation is expected to rise to 2.3%, with higher rises on the horizon, he added. Price hikes Dave Lewis told the BBC that Tesco "want to do everything we can to stop prices rising... but the fact is, they are, and there is some pressure in terms of pricing". He said customers were starting to shift spending to "fresh food" and "everyday essentials" rather than "luxuries".
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And then, of course, there are the ethical issues accompanying unsafe factories and sub-par conditions in shipping centers. Add in the psychological conditioning that comes with turning clothing into an essentially disposable good, and season it all with a knocked off runway design or two, and you'd have to wonder why anyone would want fast fashion to become even faster. But apparently people do. According to a research note that Goldman Sachs sent investors last month , British fashion retailers ASOS and Boohoo are making a run at fast fashion stalwarts like H&M and Zara, largely thanks to their ability to deliver trendy new clothing to market at an even quicker clip. View photos Photo credit: Getty More Partly due to the fact that both British retailers are online only and, as such, are able to deliver new trends at astonishing speed, they've seen their sales growth skyrocket in the last year. Earlier this week, ASOS lifted its sales forecast for the year , expecting a growth of between 30 and 35 percent. And Boohoo recently predicted that its sales growth would be around 50 percent for the year. So clearly there is still a robust market for fast fashion. And when it's used responsibly-when people buy things that they really want and intend to wear for a while-there's nothing wrong with that. But shifting even more towards a churn-and-burn approach feels like a step in the wrong direction.
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