Home Business News Tesco cheers another solid performance

Tesco cheers another solid performance

14th Jun 24 7:58 am

Tesco has revealed they have had good sales performance as a “strong” amount of groceries has been bought by customers as inflation has eased.

In the 13 weeks to 25 May Tesco’s sales grew by 3.4% to £15.3 billion compared to the same period in 2023.

There has been a demand for fresh produce and sales grew on the back of a 5% increase in food sales.

Tesco’s Finest products saw “strong” demand despite the constant pressures on household’s with the cost of living.

Ken Murphy, chief executive of Tesco, said: “We’ve continued to build momentum in the business, with strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation.

“Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets.”

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, said, “This is another solid trading update from Tesco with further volume growth and market share gains in the first quarter. The group is more than holding its own against the German discounters and carries good momentum into the upcoming summer of sport.

“With food prices moderating, the UK supermarkets can no longer rely on inflation to boost sales. This means volume growth is critical and Tesco is delivering just that.

The group has worked hard for several years to lower prices, improve the quality of its ranges and bolster its brand perception. This is clearly resonating with the UK consumer.

“Lower food inflation should also ease pressure on consumers, whose finances have been squeezed from all angles by rising prices, no more so than for the weekly shop. With interest rates likely to be cut sooner rather than later, this could provide an additional boost to UK consumer sentiment.

Tesco cannot afford to rest on its laurels. Aldi and Lidl continue to expand at a rate of knots, and the UK economy is not out of the woods, with an election looming. However, Tesco is in the strongest position it’s been for many years and will look forward to the rest of the year with confidence.”

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