Tesco has reported an uplift in sales over the Christmas period and stuck to its full-year profit guidance.
Tesco recorded a 6.1% increase in like-for-like sales for the 19 weeks to January 7, 2023, up 7.8% during the key three-week Christmas trading period.
Group sales for the third quarter grew 5.7% with a 7.9% boost in the weeks leading up to Christmas.
The retailer credited the robust performance to its strengthened value proposition, with the Aldi Price Match offer and Clubcard Prices “continuing to provide great value”. Its Everyday Low Prices range also delivered, with sales up 7.4% since a new price lock commitment, which began in October.
Due to shoppers switching from more expensive supermarkets, Tesco also reported that sales of its premium own-label range Finest increased by 8.2% during the period and fresh food grew 8.1%.
Chief executive Ken Murphy said: “I’m really pleased with our performance over this period – particularly the further strong growth at Christmas on top of the exceptional growth of the last few years. We’ve delivered a strong market share performance in the UK and Ireland; Booker has continued to grow strongly despite a particularly tough catering backdrop; and our Central European business has delivered its highest sales growth for many years.
“I’m extremely proud of the way Tesco has stepped forward to help customers dealing with tough times this Christmas. By delivering relentlessly on the strategic priorities that we set out 18 months ago, we have made sure that customers know they will benefit from great value and quality in every part of their basket, however they choose to shop with us.”
The retailer’s online sales also made a return to growth, with sales almost 60% higher than pre-pandemic, while stores and convenience enjoyed “continued strong growth”.
The retail and catering divisions of Tesco’s wholesale arm Booker grew, with retail like-for-likes up 11.9% and total Booker like-for-likes up 15.8%.
Murphy said: “It has been a huge team effort and I want to thank every colleague across the business for their hard work. I’d also like to thank everyone who generously supported our winter food collection, which has contributed to a record 39 million meals donated by Tesco and our customers so far.
“We go into the new calendar year with good momentum and I am confident we can continue to maintain our competitiveness and deliver a strong performance relative to the market despite the challenging conditions ahead.”
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