Tesco Q1 sales slow amid ‘subdued’ UK market

Tesco has reported Q1 like-for-like sales growth of 0.2% attributed to what it calls a “subdued” UK market.

For the 13 week period ending 25 May 2019, group sales reached £13.9bn. In the UK the Big Four grocer saw like-for-like sales increase by 0.2% to £9.1bn. Despite the slowdown Tesco said it “outperformed” in both sales and volume terms as it made further investments in range, price and loyalty.

The supermarket said its fresh food volume outperformance was “particularly strong” in prepared foods (+2.4%) and bakery and dairy (+1.6%)1. It added its Easter performance was strong across all formats, including its “biggest ever” sales day for small stores on Easter Sunday.

UK online grocery sales were up 7% year-on-year, with the proportion of customers choosing to click and collect their orders increasing to over 10%, however Tesco added this was slightly offset by the closure of Tesco Direct in July last year which impacted total UK sales growth by 0.8%.

Dave Lewis, Tesco chief executive, said :“We have had a strong start to the year, growing ahead of the UK market on both a volume and value basis. Our customer offer is more competitive than ever, with a wider choice of our ‘Exclusively at Tesco’ products now available in more stores, helping to drive more than 10% sales growth across the range.

“Following a particularly good Easter, our ‘100 Years of Great Value’ event in May proved very popular with more than 1.5 million customers benefiting from discounted Clubcard Prices.”

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