Tesco quarterly performance boosted by focus on value
Tesco has delivered an 8.2% increase in first quarter like-for-like sales as its “relentless focus on value” continued to attract customers.
In the 13 weeks ending 27 May, the supermarket’s UK like-for-like sales rose by 9% to £10.8 billion while sales in central Europe edged up 1.1%.
Tesco said its larger stores performed particularly well, with like-for-like growth of 9.9%.
Meanwhile online sales rose by 8.2%.
Ken Murphy, Tesco chief executive, said: “We are pleased with our performance in the first quarter, underpinned by our relentless focus on value. Customers continue to recognise our leading combination of great value and quality in every part of their basket – from essentials covered by our Aldi Price Match, through to our growing Finest range.”
Tesco said there were early signs that price growth is beginning to slow as it continues its focus on offering customers value for money.
Murphy added: “We are very conscious that many of our customers continue to face significant cost-of-living pressures and we have led the way in cutting prices on everyday essential items. There are encouraging early signs that inflation is starting to ease across the market and we will keep working tirelessly to ensure customers receive the best possible value at Tesco.”
The supermarket reiterated its existing profit guidance for its full year despite the strong sales growth.
Murphy said: “By focusing on our customers we have delivered a strong start to the year. We are well-positioned for the months ahead and are reiterating our guidance for the full year.”
