Tesco delivers sales growth for 10th quarter in row

788
Tesco update

Tesco has delivered its 10th consecutive quarter of sales growth, thanks to an uptick in like-for-likes and its newly-consolidated Booker division.

For the 13 week period ending May 26, Tesco recorded a 1.8 per cent increase group-wide like-for-like sales growth, with UK & Ireland sales rising 3.5 per cent.

On its own, Tesco’s UK market recorded a 2.1 per cent sales rise.

The Big 4 grocer added that like-for-likes at Booker – the wholesaler and convenience store operator it acquired in a £3.7 billion deal that was finalised this year – rose by 14.3 per cent during the period.

However, sales at Tesco’s Central Europe and Asian markets have declines for the quarter, dropping one per cent and nine per cent respectively.

“Our growth plans are on track and we are pleased with the momentum in the business,” group chief executive Dave Lewis said.

“We remain well-placed to serve our customers better and deliver on our medium-term financial ambitions.

“We are delighted with initial progress on Booker, and are focused on delivering the synergy benefits that our merger brings.”

Tesco’s first quarter update comes on the back of an exceptional full-year trading report, in which it recorded a 28.4 spike in operating profit before exceptional items to £1.64 billion and a 2.3 per cent uptick in group sales to £51 billion

Other updates from the first quarter includes the continued re-launch of over 10,000 own brand products, with 2850 completed to date, as well as further investment in price cuts by focusing on exclusive fresh food brands.

The retailer also took a significant step towards establishing a more sustainable non-food offer announcing it would shut down its Tesco Direct, which will affect around 500 jobs.

The company said customers shopping on Tesco.com can already buy some products from toys, homeware and cookware ranges and it will selectively build on this offer, creating a simpler online experience for customers once Tesco Direct ceases trading on July 9.

Click here to sign up to Retail Gazette‘s free daily email newsletter