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Tesco has said people are "watching every penny" as they try to make ends meet, amid rising costs.
The UK's largest supermarket chain said customers are looking for ways to make their money go further, including cutting back on eating out.
It came as Tesco reported a fall in half-year profits and warned full-year profits would be at the lower end of its previous guidance.
Tesco also announced a further boost to pay for its UK workers.
The cost of living is increasing at its fastest rate in nearly 40 years, driven by the rising cost of food and energy.
It is eating into household budgets, with prices rising faster than wages.
"As we look to the second half [of the year], cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market," said Ken Murphy, Tesco's chief executive.
"We know our customers are facing a tough time and watching every penny to make ends meet."
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