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Tesco sales buoyed by international growth

UK supermarket chain Tesco has announced further growth in its like-for-like sales as it continues to rebound from recent controversies.

The retailer, which has embarked on a significant restructuring in recent months, saw like-for-like sales in the UK rise by a modest 0.3%, while international sales jumped 3% in the first quarter of this year.

It marks an overall 0.9% like-for-like sales growth for the Tesco group which was underlined by an almost 5% volume growth in produce and meat, described as market beating in the firm’s statement to the stock exchange this morning.

The figures represent a second quarter of tentative growth for the chain after recent tribulations following its supplier controversy and a wider contraction in the UK’s supermarket sector.

Chief Executive, Dave Lewis, commented: “We have delivered a second quarter of positive like-for-like sales growth across all parts of the Group in what remains a challenging market with sustained deflation.

“In both the UK and Internationally, we are putting customers at the centre of everything we do and re-configuring our business to serve them a little better every day. Our new fresh food brands are performing very well, with over two-thirds of our customers having bought products from the new range.”

This widespread restructuring has saw a number of Tesco’s operations scaled back, including a reduction in the number of 24 hour Tesco Extra stores, and the sale of some of its interests at home and abroad.

Lewis added: “We are encouraged by the progress we are making. By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way.

“I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders.”

Today’s statement also confirmed that the retailer had agreed to sell Harris and Hoole, its chain of artisan coffee shops, to chain Caffe Nero, continuing the disposal drive which saw it dispense with Dobbie’s Garden Centres last week.

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