Tesco continues recovery with solid Q3 | Progresiv
Tesco has capped a year of recovery with a solid performance during its third quarter and over the key festive period. During the 13 weeks ended 26 November, the group’s overall like-for-like sales rose 1.5% with its core UK business seeing growth of 1.8%. Tesco said the period marked its eighth consecutive quarter of like-for-like volume growth with it also making its first quarterly market share gain since 2011. 
Like-for-likes in Ireland edged up 0.5%, whilst sales in its international division grew 0.6%, with 0.7% growth in Europe and a 0.4% rise in Asia.
Over the Christmas trading period covering the six weeks ended 7 January, Tesco’s UK like-for-like sales rose a solid 0.7%. Food like-for-like sales were up 1.3%, boosted by robust performance in fresh food and improved product availability. Tesco added that it saw strong demand for its Christmas grocery ranges with a 24% increase in party food sales, whilst ‘Free From’ sales rose 18%.
The group said that its decision not to repeat its Clubcard ‘Boost’ promotion during the period impacted total UK like-for-likes by 0.8% due to lower general merchandise sales. However, it still saw strong performance in clothing and toys, with sales up 4.3% and 8.5% respectively.
Amid signs that inflationary pressures are starting to build in the grocery sector, Tesco said it was working in collaboration with suppliers to minimise the impact on its customers, stressing that the price of a typical basket still remains nearly 7% cheaper than two years ago. (www.kamcity.com)
