17th Jun 09
Tesco posts best quarterly UK sales in two years
by Paul Russell
www.tesco.com
Tesco, the third-largest of the world’s retailers, recently announced its best quarterly sales performance in Britain in two years, noting that it was closing in on the growth rates reported by its domestic competitors.
On Tuesday, the company reported that first-quarter sales at its UK stores that had been open for at least a year were up by 4.3 per cent, excluding fuel and VAT, up from the 3.7 per cent achieved in the previous quarter, and in line with forecasts.
Sales for the group increased by 9.7 per cent, including petrol, for the 13 week period ended 30 May, with growth particularly strong in international markets. The international growth was fuelled by currency moves, the opening of new stores and a South Korean acquisition last year.
Tesco derives approximately 70 per cent of its sales and 75 per cent of its trading profits in the UK, but over the past several months has been losing market share to rivals ASDA, Morrisons and Sainsbury’s.
The group sees around one of every three pounds spent by consumers in supermarkets, and has attributed the loss in share to shoppers switching to discount product ranges – which have boosted sales volumes but have not given it the benefit of food price rises seen at its competitors.
Laurie McIlwee, the company’s finance director, said to Reuters: “The relative performance is closing,” adding that rivals were also seeing strong growth after addressing some “real fundamentals” regarding pricing and availability.
Thanks to www.ibtimes.co.uk for the above quotes, for more information on this article please visit their website.
www.tesco.com
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