Tesco UK sales rise by 1.8% but growth slows from previous quarter
Tesco has posted a 1.8% increase in UK like-for-like sales in its first quarter after trading was boosted by warm weather.
However, this was slower than the growth reported in the fourth quarter of the previous financial year when like-for-likes increased by 3.1%.
Subscribe to TRBIn the three months to 30 May, food sales rose by 2.6% with fresh food sales up 3.6%. The retailer saw particularly strong growth in its Finest range where total sales climbed by 9%.
Tesco also delivered online growth, with sales up 8.9%, as it expanded Whoosh into a further 34 large stores. The retailer has also been testing dynamic, personalised recommendations at its online checkout to help customers discover new ranges and products,
During the period, Tesco launched over 520 new and improved products including over 220 Finest lines. It also extended Aldi Price Match to over 2,000 Express stores in the period.
In the Republic of Ireland and Central Europe, the retailer’s like-for-like sales grew by 3.3% and 0.8% respectively.
Meanwhile, core retail sales at its Booker wholesale business declined by 1.5% following lower-margin contract exit and strong prior-year sales growth.
Ken Murphy, Tesco chief executive, said: “I am pleased with our progress in the first quarter, with customer satisfaction up strongly and continued sales growth building on the exceptional performance we delivered last year.
“With the conflict in the Middle East creating ongoing uncertainty for many households, we remain focused on giving customers the very best combination of price, quality and service.
“Shopping at Tesco is ever more convenient and personalised, with the rollout of ‘Book for Later’ Whoosh delivery slots offering more options for same-day delivery, and Your Clubcard Prices providing nearly 100 million tailored offers for customers since launching in March.
“Tesco Media is growing strongly, with the World Cup providing exciting opportunities to help us connect brands and customers.”
Looking ahead, Tesco acknowledged that the situation in the Middle East is continuing to create uncertainty, but said its “good” start to the year means it continues to expect group adjusted operating profit of between £3 billion and £3.3 billion for FY 26/27.
Murphy said: “I want to thank colleagues for their continued dedication and hard work. By relentlessly focusing on what matters most for our customers, we are well-placed to build on our progress to date.”
