Tesco posts first half sales rise
In the six months to 27 August, group like-for-like sales grew by 1%.
UK volumes and transactions were also up in the period, rising by 2.1% and 1.6% respectively.
While group operating profit before exceptional items increased by 60.2% to £596 million, statutory pre-tax profit declined by 28.3% to £71 million.
Tesco chief executive Dave Lewis said: "We have made further strong progress in the first half, with positive like-for-like sales growth across all parts of the group as we re-invest in our customer offer whilst rebuilding profitability in a sustainable way.
“We are more competitive across our offer. Prices are more than 6% lower than two years ago, availability and service have never been better and our range is more compelling. Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere.”
International sales grew by 3.2% at constant exchange rates, including a net positive contribution from new store openings in Asia which offset the impact of store closures in Europe. Like-for-like sales grew by 2.6% overall with positive growth in both Europe and Asia.
Looking ahead, Lewis said: “Whilst the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilising the business and positioning us well for the future. Today, we are sharing the plans we have in place to become even more competitive for our customers, even simpler for colleagues and an even better partner for our suppliers, whilst creating long-term, sustainable value for our shareholders.”
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