Tesco has boosted like-for-like sales in the UK by 5.1% to £12.3bn as the retailer grabbed more market share in its first quarter.
The rise in sales – with overall group revenues up 4.6% to £16.4bn in the 13 weeks to 24 May – beat City expectations, with Tesco highlighting a strong performance from its premium Finest own-label range.
Finest is going from “strength to strength”, according to CEO Ken Murphy, with sales up 18% year on year.
Market share in the UK climbed by 44 basis points to 28%, with Tesco bragging of 24 consecutive four-week period share gains.
Food sales in the UK increased 5.9% in the quarter, with a strong contribution from fresh food. Tesco’s non-food sales (excluding toys) rose 6.2%, with strong growth in home and clothing, benefiting from new and extended ranges as well as warmer weather.
Sales at the wholesale Booker operation also increased in the period, with a 2% like-for-like rise, which was held back by the continued decline in tobacco and Best Food Logistics.
“We are pleased with our performance across the first quarter,” Murphy said. “Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the group.
“In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation. We introduced over 350 new own-brand products across the quarter, including the launch of our exciting summer food range, and Finest is going from strength to strength, with sales up 18% year on year.”
He added: “The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco.”
Tesco maintained its full-year guidance, with adjusted operating profits expected to be between £2.7bn and £3bn, compared with £3.1bn last year.
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