Tesco makes strong start to new financial year
Tesco has seen its retail sales increase by 3.4% on a like-for like basis to £15.3 billion in its first quarter as it experienced strong volume growth, particularly in fresh food.
While sales in the UK and Republic of Ireland rose by 3.6% to £14.3 billion in the 13 weeks to 25 May, sales in central Europe edged up 0.6% to £975 million.
Ken Murphy, Tesco chief executive, said: “We’ve continued to build momentum in the business, with strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation.
“We continue to be the cheapest full-line grocer and are the most competitive we’ve ever been, with our value, product quality and service driving better brand perception and customer satisfaction.
“Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets.”
Food sales increased by 5% across the quarter while non-food sales rose by 0.7% driven by strong growth in Tesco’s clothing category.
The retailer saw growth across all channels with online sales climbing by 8.9% following a good performance by its Whoosh rapid grocery delivery service.
Tesco said growth in its Finest food range was particularly strong. It has recently launched more than 100 new own brand products across the range, including its Finest Dine In summer menu.
For the 2024/25 financial year, Tesco expects its retail adjusted operating profit to be at least £2.8 billion.
Murphy added: “Following another strong quarter, we’re pleased to reiterate our guidance for the full year, with sales trends in line with our expectations and the business well-positioned for the months ahead.”
