Tesco sales firmly on track
Non food share continues to grow
Tesco has seen sales growth continue in both the Uk and its international business across the first quarter of it new financial year, delivering results ahead of City forecasts.
Group sales for the twelve weeks to May 21 increaaed by 14.6 per cent, with continued growth in the core UK business as well as further growth in non-food market share.
Tesco said its international operations have also seen a strong start to the year, while retailing services performed well, despite a tougher market for its personal finance arm.
Total UK sales grew by 11.3 per cent, ‘showing consistent growth in a tough market’. Like-for-like sales grew by 8.8 per cent, ahead of forecasts, driven by strong volumes and a small amount of deflation. New stores contributed 2.5 per cent to growth.
[img r]tescoexpressnew.jpg[/img]Tesco said petrol volumes continue to benefit from lower prices. Excluding petrol, like-for-like sales for the quarter increased by 6.8 per cent, after deflation of 1.8 per cent.
International sales were up 19.9 per cent at constant exchange rates and by 27. per cent at actual rates, Like-for-like sales growth, adjusted for Easter, grew to 5.5 per cent, helped by investment in more competitve pricing in Central Europe.
Chief executive Terry Leahy said: “The whole Tesco team has worked hard to deliver a solid start to a more challenging year.
“Our strong sales performance has put us in a good position to meet the demands of higher oil-related costs across the Group, rising business rates in the UK, the initial costs of our price investment in Central Europe and a tougher market for Tesco Personal Finance.”
