Tesco PLC has announced an encouraging onset of inflation relaxation, accompanying an 8.2% increase in group comparable sales for the first quarter, driven by a robust performance in the UK.
The leading British retailer reported a 9% rise in UK like-for-like sales for the 13 weeks leading to May 27, 2023, attributing it to a strong performance across all business models and channels.
Large store sales experienced a notable surge, up by 9.9%. Online sales, meanwhile, increased by 8.2%, elevating the online market share to 37.5%.
CEO Ken Murphy commented, “We are well-prepared for the forthcoming months and reiterate our full-year guidance.”
We’re gratified by our first-quarter performance, which is a testament to our unyielding commitment to providing value.
Our customers consistently acknowledge our unrivalled blend of superior value and quality throughout their shopping experience – from essentials included in our Aldi Price Match to our expanding Finest range.
We’re acutely aware that a large number of our customers continue to grapple with substantial cost-of-living challenges and we’ve been at the forefront in reducing prices on everyday essential items.
We have noticed hopeful initial signals that inflation is beginning to relent across the market, and we will persist in our relentless efforts to ensure Tesco customers get the utmost value.
“We foresee maintaining a generally constant level of retail adjusted operating profit in 2023/24 and retail free cash flow within our target of £1.4bn to £1.8bn,” the company declared in a statement.
In the period, group sales amounted to £15.17bn, with UK sales contributing £10.80bn and Booker sales £2.28bn.
Comparable sales in the Republic of Ireland climbed by 7.3%, and Booker sales increased by 8.4%. Central Europe sales marginally rose by 1.1%, with volumes affected by ongoing cost-of-living issues, particularly concerning discretionary non-food items.
Tesco Bank’s sales soared by 13.9%, driven by new customers in both the loaning and insurance sectors, along with heightened credit card spending.
