THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Tesco UK like-for-like sales down 1.5% in third quarter

Tesco has reported a 1.5% drop in third quarter UK like-for-like sales, excluding petrol, which the retailer has attributed to a weak grocery market.

GENERAL MERCHANDISE

Tesco UK like-for-like sales down 1.5% in third quarter

Tesco has reported a 1.5% drop in third quarter UK like-for-like sales, excluding petrol, which the retailer has attributed to a weak grocery market.

In the 13 weeks to 23 November, Tesco’s international businesses also saw falling sales especially in Thailand, Ireland and South Korea.

Across the group, total sales increased by 0.6% at actual exchange rates and by 0.2% at constant rates, excluding petrol.

Tesco chief executive Philip Clarke said: "Continuing pressures on UK household finances have made the grocery market more challenging for everyone since the summer and our third quarter performance reflects this. The actions we have taken to position the business for the future - including the work currently underway to transform our general merchandise offer and our decision to significantly reduce the amount of new space we open - are also holding back our sales performance in the short-term.”

Clarke added that customers had responded positively to the retailer’s strategy to Build a Better Tesco in the UK. During the quarter, the supermarket completed the relaunch of its Finest range and refreshed over 100 stores. It also ploughed further investment into its fast-growing online grocery service and has now rolled out one-hour grocery home delivery slots to over 98% of the UK population.

Total sales in the UK, including VAT and excluding petrol, increased by 0.9%.

Tesco reported a strong customer response to the launch of its Hudl tablet with over 300,000 units sold to date, which is more than the supermarket had originally planned to sell in total in the run-up to Christmas.

The supermarket said international conditions continued to be “challenging”, particularly in Thailand and Ireland, although its businesses in Poland and Turkey had showed “better trends”.

Like-for-like sales in Asia declined by 5.1%. Tesco attributed the decline on the impact of regulatory restrictions on opening hours Korea. In addition, underlying improvements in the performance of Tesco’s business in Thailand were more than offset by a tougher comparative and increasingly challenging conditions in the country for consumers.

In Europe, like-for-like sales for the region as a whole declined by 4% to mark a slight improvement on the second quarter.

Clarke said: “Overseas, the near-term trading environment also remains tough, most notably in Thailand, but we have been able to drive a better performance in Poland and Turkey following the actions taken in the first half.

“We are confident that our strategic priorities - strengthening the UK business, establishing multichannel leadership and ensuring capital discipline - are the right ones and that they will drive long-term value and returns."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process