THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
Retail Solutions
Food & Drink
Tesco's UK like-for-like sales drop 2.4% at Christmas

Tesco saw a 2.4% decline in UK like-for-like sales excluding fuel over the festive period, which the supermarket blamed on further weakness in the UK grocery market.


Tesco's UK like-for-like sales drop 2.4% at Christmas

In the six weeks to 4 January 2014, group sales fell by 1.6% including fuel with like-for-like sales dropping 2.8% excluding fuel.

International sales also declined in the six week period, falling 3.6% on a like-for-like basis excluding fuel. 

Tesco said the poor performance in the UK was driven primarily by a weaker grocery market, and also reflected the impact of a tougher comparative with the same period last year. In addition, trading was affected by the supermarket’s decision to reduce its new store opening programme and by ongoing work to improve its general merchandise offer, which is holding back top-line performance in the short term.

The supermarket took over £1 billion in sales in the five days before Christmas, which included its biggest trading day, while UK online sales grew by 14% in the six week period to £450 million. Tesco also processed over 3 million online grocery orders, which climbed 11% in the six weeks. Online general merchandise orders rose by 25% to 1.5 million with over 70% of orders collected in-store.

Tesco chief executive Philip Clarke said: "We continued to invest in the most compelling offer for the tens of millions of customers who chose to shop with us this Christmas, but further weakness in the grocery market as a whole continued to impact our performance in the UK.

“Our ongoing work to Build a Better Tesco in the UK is also driving continued improvements for customers, although the effects are being masked in the short term by the strategic changes we have made to improve the long-term sustainability of our business – the transformation of our general merchandise business and the significant reduction in our new store opening programme.

“As expected, this Christmas saw a further consumer shift towards multi-channel retailing, and Tesco continues to play a leading role. The increasing focus we have placed in recent years on extending our lead in online grocery and on rolling out our Express format to over 1,600 stores in the UK alone has positioned us well to meet customers' changing needs.

“Our overseas performance has improved since the third quarter, driven by an improving trend in Europe. This is despite continuing external challenges, including the recent political disruption in Thailand."


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 Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
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
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing