Tesco upbeat despite sales slowdown

Tesco has blamed its slowest Christmas sales growth since the Nineties on its “exposure” to non-food sales. The supermarket chain claims a 2.5% rise in like-for-like sales for the seven weeks to January 10 is “strong” despite the slowdown.

The retail says that the rise, which excludes petrol sales, was achieved despite a “background of challenging trading conditions.”

It adds that sales growth, which increases slightly to 3.5% when adjusted for the December VAT cut, was lower than Sainsbury’s 4.5% for the 13 weeks to January 3 because of its larger non-food ranges.

Its non-food sales performance “strengthened a little” compared to its third quarter and like-for-like sales were “positive”, according to the supermarket’s Christmas and New Year trading statement published this morning (January 13). Group sales rose by 11.6%, helped by its “continued rapid international expansion.

It says that Tesco Direct, its online operation, did well in line with other retailers, reporting a total sales increase of 18% to £273m for the seven weeks, and Tesco Personal Finance, which the retailer now fully owns after buying out the Royal bank of Scotland in December, is growing strongly with 1000 new accounts being opened per day “recently”.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here