Tesco marketing investment not yet translating into sales

Tesco’s multi-million pound investment in marketing initiatives has still not translated into additional income as sales fell back into decline in its latest quarter. 

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Tesco has sold 300,000 Hudl tablets since the budget device launched in September.

The UK’ s largest supermarket chain says sales from stores open for a year or more fell by 1.5 per cent in the company’s third quarter. Like for like sales had been flat in the second quarter.

Tesco insists efforts to improve perception of the quality of its food, it launched its “Love Every Mouthful’ positioning in July to highlight the provenance of its offering as well as investing £1bn on store and multi-channel improvements to enhance customer experience, have been well received. It also relaunched its premium Finest range in October. 

Chief executive Philip Clarke, says: “Customers are continuing to respond positively to the changes we are making to the UK business to differentiate our offer and position Tesco as a multichannel leader.”

It is in online and multichannel where Tesco can report better performance. Although no figures were provided, the supermarket pointed to “record online grocery orders”. It also says it has sold 300,000 Hudl tablets since the budget device launched in September, “more than we had originally planned”.  

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