Tesco continues turnaround with 1.8% growth

The latest high -rofile Christmas trading update sees Tesco emerge as a front runner, solidifying results earlier this week that showed its market share had grown.

In the six weeks to January 7 the grocer‘s like-for-like sales inched up by 0.7 per cent, aiding a 1.8 per cent rise in sales in its third quarter.

The company‘s shares have risen 39 per cent this year, and over the festive trading season Tesco was the only of the Big 4 retailers to gain market share, rising by 1.6 per cent.

Christmas sales of core grocery ranges spearheaded the growth over the period, with a 24 per cent increase in party food as well as an 18 per cent rise in “Free From” items. 

READ MORE: Tesco to axe 1000 jobs

This marks a solid year of growth for the country‘s biggest supermarket under boss Dave Lewis, despite controversies surrounding the banking scandal late last year, and the announcement earlier this month of its senior independent director Richard Cousins‘ shock departure.

“We are very encouraged by the sustained strong progress that we are making across the group,” Lewis said.

“In the UK, we saw our eighth consecutive quarter of volume growth and delivered a third successful Christmas.

“Inflation pressure is there, but we will keep doing everything we can to minimise the impact.

READ MORE: Discounters sieze market share from Big 4 over Christmas

“We are well placed against the plans we shared in October to become more competitive for customers, simpler for colleagues, and an even better partner for our suppliers, whilst creating long-term value for our shareholders.”

Earlier this week the retailer said it would slash 1000 jobs in an effort to restructure its distribution network and simplify its operations, aiming to save £1.5 billion over three years.

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