Tesco raises annual profit forecast after bumper festive sales
Tesco has said it is on track to deliver better-than-expected full-year profit after a strong year-on-year increase in festive sales.
UK like-for-like sales rose by 6.8% in the six weeks to Christmas and by 7.9% in the supermarket’s third quarter as it benefited from strong availability in fresh food.
During the period, Tesco cut prices on nearly 2,700 products with savings of around 10%. It also invested in innovation and quality with the introduction of over 550 new and improved festive products, including the launch of its ‘Finest Chef’s Collection’
Meanwhile, online sales climbed by 11.5% after orders, volumes, pick rates and availability all rose.
Ken Murphy, Tesco chief executive, said: “The Tesco team has worked harder than ever to help customers celebrate this Christmas, with our strongest ever range of great value, fantastic quality food. I want to say a huge thank you to all of our colleagues for their relentless dedication and energy.
“We stepped up our investment in service over the key festive period, with more colleagues on the shop floor, helping to deliver market-leading availability and making this our best Christmas yet.”
Tesco has now upgraded its guidance for full year retail adjusted operating profit to around £2.75 billion from the previous range of £2.6 billion to £2.7 billion.
Murphy added: “Our powerful combination of great value, quality, availability and service means that we head into the New Year in great shape to keep delivering for customers.”