Tesco FY clothing sales drop, but signs of recovery in Q4

Tesco saw a slight 1.2 percent drop in clothing sales in the year ended February 25, but said it saw a rebound in the fourth quarter as consumer demand returned.

The British supermarket, which owns clothing brand F&F, said the drop in fashion sales mainly reflected the impact of trading over “exceptionally strong lockdown-linked demand” in the first half of the prior year, “partly offset by our efforts to rebalance space from Home to Clothing”.

On a more positive note, the retailer said it saw “a significant improvement in value perception, ahead of other clothing retailers”, and the number of customers purchasing at least one product from its home and clothing ranges increased by 11 percent and 7.6 percent, respectively.

In the fourth quarter, clothing sales were up 7 percent year-on-year.