Tesco Q1 sales rise as market share climbs on ‘powerful value proposition’
Tesco has posted strong sales growth in its first quarter, with like-for-like sales up 4.6% across the group and UK market share rising to 28%
Tesco has posted strong sales growth in its first quarter, with like-for-like sales up 4.6% across the group and UK market share rising to 28% as shoppers respond to its value-led strategy.
For the 13 weeks to 24 May, the UK’s biggest supermarket recorded a 5.1% increase in UK like-for-like sales, driven by strong customer demand for value, quality and a range of new own-brand products.
CEO Ken Murphy said: “We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group.
The retailer said it had launched over 350 new own-brand products during the quarter, while its Finest range delivered a sales boost of 18% year-on-year. Fresh food, clothing, and home also performed well, supported by the launch of its new summer range and warmer weather.
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Online sales rose by 11.5% year-on-year, helping Tesco gain share in the online grocery market. The supermarket also recently launched its F&F clothing range online in May.
In Ireland, like-for-like sales were up 5.5%, with Tesco gaining market share for the 40th consecutive four-week period, while its wholesale arm Booker delivered 2% growth as strength in core retail and catering offset the ongoing decline in tobacco.
Murphy continued: In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation. We introduced over 350 new own-brand products across the quarter, including the launch of our exciting summer food range, and Finest is going from strength to strength, with sales up 18% year-on-year.
“The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco. I would like to thank every one of our colleagues for the contribution they are continuing to make to deliver the best possible shopping trip for our customers.”
As a result the grocery giant reiterated its full-year guidance, forecasting group adjusted operating profit between £2.7bn and £3.0bn, down from £3.13bn last year.
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