Tesco grows sales despite “intensely competitive” grocery market
Tesco has posted an increase in first quarter sales despite what it described as an intensely competitive grocery market.
In the 13 weeks to 24 May, group sales rose by 4.6% on a like for-like basis to £16.4 billion as the supermarket made market share gains and continued to improve customer satisfaction.
Like-for-like sales increased by 5.1% in the UK and by 5.5% and 4.1% respectively in the Republic of Ireland and Central Europe.
Meanwhile, food sales climbed by 5.9% as fresh food performed particularly well. Non-food sales (excluding toys) rose by 6.2% following strong growth in the home and clothing categories.
Never Miss a Retail Update!Ken Murphy, Tesco chief executive, 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.
“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.
“We introduced over 350 new own-brand products across the quarter, including the launch of our exciting summer food range, and Finest is going from strength to strength, with sales up 18% year-on-year.”
Tesco said it continues to expect its full year group adjusted operating profit to come in at between £2.7 billion and £3 billion.
Murphy added: “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.”
