New figures show
Tesco’s first-quarter sales growth has beaten expectations, the supermarket announced this morning.
Like-for-like sales rose by 2.3 per cent in the three months to 27 May, boosted by demand for fresh food.
Analysts had expected a rise of 2.2 per cent after Tesco reported an increase of 0.7% in the fourth quarter.
Phil Dorrell, partner at Retail Remendy, said: “A solid set of like-for-likes for Tesco’s first quarter of trading which flies in the face of struggling volume sales for UK grocers.
“Tesco are on a roll getting their customer mojo back; stores are easier, more engaging and comparatively better value than they were a year ago. Customer-centric decisions have helped grow sales 6 quarters on the bounce.
“Tesco will also be banking on a footfall boost with the new Dixons Carphone concessions creating a ‘destination’ in store for electricals.That footfall might be walking straight passed Tesco’s own electrical offer however, so measuring the performance of both departments will be telling.
“Just when the FRC closed the investigation into PWC and their role in Tesco’s accounting scandal, Tesco shareholders have something else to make noise about: the Booker deal and Lewis’s relocation package. Shareholders may have initially baulked at Lewis’s remuneration, but from what they used to have compared to what they have with Lewis, there is little to complain about.”