Tesco is “well-placed” for global recovery

Tesco, the UK’s largest supermarket group, has posted “solid results” for the six months to 19 August claiming that its strategy of low prices and loyalty initiatives is working.

The group reported pre-tax profits up 1.5% on last year to  £1.42bn. Group sales were up 8.3% to £30.4bn with UK like for like sales up 2.7%.

Tesco chief executive Terry Leahy says: “Our focus on the customer, the consistency of our strategy, an efficient business model, strong local management teams, and a spirit of innovation and knowledge-sharing, have enabled us to improve the shopping trip for customers – by investing in consistent value they can trust and in rewarding their loyalty through Clubcard – whilst at the same time delivering a robust financial performance.”

The retailer is seeing growth in its Finest food range, which it says shows that customers’ optimism is returning.

Tesco non-food business has proved to be “resilient”, up 4.9% during the period adding it is expected to emerge from the downturn in a strong position.

Sales of clothing in the UK grew by 6.6% in total boosted by a back-to-school campaign while the online business achieved an 11% sales increase.

The group also announced it is to rename its financial division Tesco Personal Finance as Tesco Bank as part of a plan to create a full-service retail bank.

Rival, Sainsbury’s is expected to post a 5.6% rise in sales tomorrow (6 October).

Latest from Marketing Week


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


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.


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.


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