In a recent statement Tesco’s Chief Executive Dave Lewis, says the retailer has had a strong start to the year, growing ahead of the UK market on both a volume and value basis: “Our customer offer is more competitive than ever, with a wider choice of our ‘Exclusively at Tesco’ products now available in more stores, helping to drive more than 10% sales growth across the range.
“Following a particularly good Easter, our ‘100 Years of Great Value’ event in May proved very popular with more than 1.5 million customers benefiting from discounted Clubcard Prices.”
Looking in detail at Tesco’s trading update for the 13 weeks ended 25 May, in the UK, while overall grocery market growth was subdued, they outperformed in both sales and volume terms by +0.2% and +1.3% respectively having made further investments in range, price and loyalty as part of the ‘100 Years of Great Value’ celebrations for customers. The fresh food volume outperformance was particularly strong in prepared foods (+2.4%) and bakery and dairy (+1.6%). Tesco delivered a strong Easter performance across all formats, including their biggest-ever sales day for small stores on Easter Sunday.
UK online grocery sales were up 7.0% year-on-year, with the proportion of customers choosing to Click & Collect their orders increasing to over 10%. The closure of Tesco Direct in July last year impacted total UK sales growth by (0.8)%. ROI sales growth improved to 2.7% at constant rates, following our successful ‘You Won’t Pay More’ campaign in addition to targeted coupon activity.
Booker continues to grow well despite exceptionally strong growth last year driven by one-off contract wins. Booker’s customers are responding positively to the benefits of ‘Joining Forces’ including the improved fresh food offer and the launch of over 100 new and exclusive fresh-cut flowers and drinks products, helping drive total sales growth, on a comparable days basis, of 4.2% excluding tobacco.