Tesco Sales Up in Third Quarter
Like-for-like sales for the quarter increased by 4.8%. The company said that inflation, excluding petrol, of 0.8%, which was similar to the first half, was driven by higher market prices for commodities and seasonal fresh foods.
05/12/07 UK leading retailer Tesco has said that group sales for the thirteen weeks ending 24th November 2007 increased by 11.8%, up from 9.2% in the first half, driven by all five parts of the retailer’s strategy. “Our rapidly expanding international operations have delivered excellent growth, the core UK business has made solid progress and our non-food ranges - helped by the launch of Tesco Direct - have performed well. Our retailing services are continuing to attract new customers through a strong pipeline of new products and Dobbies Garden Centres has made a good start as part of the Group,” the retailer said in a statement.
International sales were up 25.7% at actual exchange rates and by 21.4% at constant rates. This included a particularly strong performance in Asia, where sales grew by 29% at constant rates. We Tesco also seen rapid growth in all their Central European markets. Tesco said it is on track to deliver a substantial programme of new store openings this year, which will provide over seven million square feet of new selling space in International. At the same time, the conversion of the acquired Leader Price stores in Poland and the Makro business in Malaysia has gone very well.
Good progress was made in the UK, with total sales growing by 7.6%. Like-for-like sales for the quarter increased by 4.8%, including petrol, and by 4.1% excluding petrol. The company said that inflation, excluding petrol, of 0.8%, which was similar to the first half, was driven by higher market prices for commodities and seasonal fresh foods. Non-food remains deflationary. Net new stores, excluding petrol, contributed 3.0% (2.8% including petrol). Tesco Direct and our tesco.com internet grocery business have both delivered very strong sales in the quarter.
“We’ve maintained pleasing progress during the third quarter across the group. Overall sales growth has strengthened in the period, with International delivering a particularly strong performance, and the UK has again done well, with good growth in our core food categories. Our first Fresh & Easy stores in the United States have been very well-received by customers,” Chief Executive, Terry Leahy commented.
