Tesco posts first quarter sales rise
Tesco saw its group sales rise by 1% year-on-year to £13.3 billion in its first quarter following a strong performance in the UK.
In the 13 weeks ended 29 May, UK like-for-like sales were up 9.3% on the corresponding period two years ago and by 0.5% on the same period last year. Tesco said it benefited from customers consuming more meals at home compared to before the Covid-19 pandemic and from continued high demand for online shopping. Its general merchandise and clothing offerings performed particularly well in the period with respective one and two year like-for-like sales growth of 10.3% and 52.1%.
Meanwhile, sales in the Republic of Ireland fell by 6.1% on a one year like-for-like basis, but were up 13%% on a two year basis. Sales in Central Europe were down 1.6% on a one year basis due to non-food sales being restricted in Czech Republic, although there was a stronger performance in Slovakia and Hungary.
Ken Murphy, Tesco chief executive, said: “We delivered a strong performance in the first quarter, even as we lapped the high demand of last year due to the pandemic. We have further strengthened our commitment to delivering consistent, reliable value and to rewarding loyalty, as we extended Clubcard Prices to all Express stores.
“Our colleagues continue to do a great job serving our customers, and I thank them for everything they’re doing. We remain focused on delivering great value, increasing loyalty and further developing our digital platform so we can serve our customers when, how and where they want.”
Tesco said its profit guidance from April remains unchanged.
Murphy added: “While the market outlook remains uncertain, I’m pleased with the strong start we’ve made to the year and continue to be excited about the many opportunities we have to create value over the longer term.”
