Tesco Q1 sales rise expected ahead of next week’s results

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Tesco deliveries

Tesco is predicted to post ongoing sales growth ahead of its quarter one results announcement next week.

Analysts have predicted the UK’s largest grocer saw a 2.2 per cent rise in like-for-likes during the first quarter up from last quarter’s 0.7 per cent rise.

“Tesco’s first quarter sales update could provide some relief, with inflationary support driving improved UK like for likes,” Jefferies analyst James Grzinic said.

“A more supportive inflationary environment and Kantar indications of a recent rebuild in food sales momentum at Tesco are key in informing our forecast.”

Although Tesco has been helped by rising inflation prices, the phenomenon is a double-edged sword and could drive customers to disruptive German discounters Aldi and Lidl, to which the grocer has already lost countless shoppers.

READ MORE: Corporate governance lobby group slams Tesco CEO’s pay package

It was announced earlier this week that chief executive Dave Lewis received a £142,000 relocation package so he could relocate from London closer to the supermarkets headquarters in Hertfordshire.

This move has caused widespread controversy from shareholder and lobby groups and it is likely to be a key topic amid Tesco’s annual general meeting, set for shortly after its results are released.

Tesco’s looming merger with Booker is also likely to come under scrutiny as the retailer has remained quiet about its developments. Many shareholders have also voiced their opposition to the deal, branding it a distraction from financial matters.

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