📈 Quarterly Performance
British supermarket giant Tesco reported a 3.6% rise in like-for-like sales in the UK and ROI for the 13 weeks ending May 25, 2024. This brought the total to £14.3M. Food sales, the core driver, grew by 5% this quarter. Non-food sales rose by 0.7%, led by strong growth in clothing.
👔 Clothing Sales Surge
Clothing sales significantly boosted Tesco's non-food category. Tesco highlighted "strong growth in clothing" as a key factor. This emphasis on clothing helped drive overall non-food sales up by 0.7%. Ken Murphy, Tesco’s CEO, pointed out that easing inflation supported volume growth across all markets.
🛒 Market Share and Customer Trends
Tesco's market share increased by 52bps to 27.6%, outperforming competitors. "Customers are switching to us from other retailers and shopping more often with larger baskets," said Murphy. This trend has been consistent over the past two years, indicating strong customer loyalty and effective strategies.
📅 Future Projections
Looking ahead to the 2024/25 financial year, Tesco expects a retail adjusted operating profit of at least £2.8B. Retail free cash flow is projected to be between £1.4B and £1.8B. Murphy expressed confidence, stating, "Following another strong quarter, we're pleased to reiterate our guidance for the full year." This optimistic outlook reflects Tesco's solid performance and strategic positioning.
Will Tesco maintain its growth momentum?
