Tesco has posted strong sales growth in its first quarter, with like-for-like sales up 4.6% across the group and UK market share rising to 28% as shoppers respond to its value-led strategy.
For the 13 weeks to 24 May, the UK’s biggest supermarket recorded a 5.1% increase in UK like-for-like sales, driven by strong customer demand for value, quality and a range of new own-brand products.
CEO Ken Murphy said: “We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the group.”
The retailer said it had launched over 350 new own-brand products during the quarter, while its Finest range delivered a sales boost of 18% year-on-year. Fresh food, clothing, and home also performed well, supported by the launch of its new summer range and warmer weather.
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Online sales rose by 11.5% year-on-year, helping Tesco gain share in the online grocery market. The supermarket also launched its F&F clothing range online in May.
In Ireland, like-for-like sales were up 5.5%, with Tesco gaining market share for the 40th consecutive four-week period, while its wholesale arm Booker delivered 2% growth as strength in core retail and catering offset the ongoing decline in tobacco.
Murphy continued: “In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation.
“The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco. I would like to thank every one of our colleagues for the contribution they are continuing to make to deliver the best possible shopping trip for our customers.”
As a result the grocery giant reiterated its full-year guidance, forecasting group adjusted operating profit between £2.7bn and £3.0bn, down from £3.13bn last year.
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