Tesco sales inch up as it hails growth in ‘subdued UK market’

For the 13 weeks to November 23, 2019 Tesco reported total sales increase of 0.2% and a like for like sales increase for the period of 0.4%.

For the 6-week Christmas trading period to January 4, the supermarket giant reported total sales growth of 0.2% and like for like sales increase of 0.4%, bolstered by what it said was its “biggest ever day of UK food sales in our history” on December 23.

For the combined 19-week period, Tesco reported total sales across the UK and Ireland of £16.8bn.

UK total sales and like-for-like sales in the third quarter were down 0.5% and 0.4% respectively, which Tesco said was due to a negative 0.4% impact from reduced general merchandise sales.

Booker sales grew across both the third quarter and Christmas trading periods, up 3.8% excluding tobacco. Its acquisition of Best Food Logistics is proceeding as planned and will be completed in early March.

Tesco said its online grocery business delivered over 14 million orders across the 19 weeks encompassing both the third quarter and Christmas trading periods.

The supermarket giant praised “our highest level of availability in six years” during the combined period and was buoyant about customer reaction to the newly launched Clubcard Plus, which it said “has been very positive”.

Tesco chief executive Dave Lewis said: “In a subdued UK market, we performed well, delivering our fifth consecutive Christmas of growth.

“In our centenary year, our customer proposition was compelling, our product offering very competitive and thanks to the outstanding contribution of our colleagues, our operational performance was the best of the last six years. As a result, this Christmas we had the biggest ever day of UK food sales in our history.”

Internationally, total sales across Central Europe for the 19-week period slumped 13.7% to £1.92bn, while total sales for the Asian business were flat at £1.93bn.

The grocer said the performance of Central Europe “reflects the ongoing significant transformation” of the business, while it also confirmed reported interest in a sale of its Thai and Malaysian businesses.