Tesco profits soar 10%

Tesco has seen record profits up 10.1% to £3.4bn in the past year despite the tough conditions of the recession.

Tesco clubcard

The supermarket giant revealed a global sales increase of 6.8% to £62.5bn for the 12 months to 27 February in its full year trading update.

UK sales rose 4.2% to £42.3bn.

Sir Terry Leahy, Tesco’s chief executive says the supermarket giant has “weathered the economic story well” by adapting cost structures and ranges to help customers “save money when they needed to and treat themselves when they’ve wanted to”.

He added that the chain is in a stronger position than it was before the recession.

Tesco says there are now 18% more households redeeming Clubcard vouchers than this time last year following a strong push to drive its loyalty programme by offering double points, better offers and more accessible with contactless Clubcard iPhone app.

Non-food sales rose 6.2% to £13.1bn, with £9bn in the UK while clothing sales grew by 7.3% reaching £1bn for the first time, driven by the launch of its online clothing range and an increase in children’s clothes.

Profit at Tesco Bank rose 13.1% to £250m while revenue dropped 9.4% to £860m.

Tesco’s online businesses saw a 14% increase in sales with profits rising 26% to £136m.

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 3711 or email subscriptions@marketingweek.com

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