Tesco Reports Quarterly Sales Rise, Market Share Increase, Maintains Profit Outlook

Jun 14, 2024, 06:44 AM

Tesco, the UK's largest retailer, has reported a rise in quarterly sales and maintained its profit outlook. The company has seen an increase in both in-store and online spending, with a notable shift of customers from rival stores. Tesco's total retail sales for the 13-week period from March to May grew by 3.4% on a like-for-like basis, with UK retail sales up 4.6% (Food +5.0%, Non-Food +0.7%, Online +8.9%). The company also reported a market share increase of 52 basis points to 27.6%. Despite challenges such as low single-digit food inflation and shipping cost increases, Tesco's CEO expressed optimism about improving customer sentiment and was not overly concerned about employment measures in the Labour Party manifesto. However, Booker, Tesco's wholesale division, saw a 1.3% decline in like-for-like sales due to continued tobacco market share decline and fast-food sector weakness.