Tesco reports first quarter sales growth
Tesco has reported sales figures for its first quarter; and findings show a group like-for-like sales growth of 0.9%.
The quarter comprises the 13 weeks up until 28th May 2016, with positive like-for-like sales growth in all regions.
Including a small contribution from new store openings, total sales grew by 1.1% at constant rates.
At actual exchange rates, sales grew by 1.8% including a 0.7% positive foreign exchange translation effect due to a weakening of sterling, principally against our European currencies.
Tesco says that new and exclusive fresh food brands are performing very well in the UK, with a strong customer response and food launches performing in line with Tesco’s expectations.
According to the supermarket, the launch of seven new fresh food brands in March has helped to meet more of customers’ shopping needs, reportedly further removing any reasons for them to shop elsewhere.
Tesco has also stated that customers are able to save nearly £1.60 – around 17% – off the cost of a typical basket of ten of the most popular meat, fruit and vegetable lines by choosing to buy products from the new ranges.
Dave Lewis, chief executive, said: “In both the UK and internationally, we are putting customers at the centre of everything we do and re-configuring our business to serve them a little better every day. Our new fresh food brands are performing very well, with over two-thirds of our customers having bought products from the new range.
“We are encouraged by the progress we are making. By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way.
He continued: “I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders.”
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