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Tesco posts like-for-like sales growth of 1 percent in Q1

Tesco Group said like-for-like sales grew by 1 percent for the 13 weeks to May 27, 2017, representing a sixth consecutive quarter of positive growth. Total sales at constant exchange rates were up around 0.8 percent, as the company said, year-on-year impact of selling Dobbies, Giraffe and Harris & Hoole more than offset store openings across the group. At actual exchange rates, sales grew by 3.6 percent including a 2.9 percent positive foreign exchange translation effect.

Commenting on the first quarter trading, Dave Lewis, Tesco’s Chief Executive said in press releae, “In tough market conditions, we have stayed true to our commitment to helping customers – working closely with our supplier partners to keep prices low. This is a good start to the year, with our sixth consecutive quarter of positive like-for-like sales growth across the Group. We are confident in our plans to create long-term, sustainable value for our key stakeholders and to deliver on the ambitions we have set out.”

UK & ROI like-for-like sales up 2.2 percent

The company said, like-for-like sales in the combined UK & ROI business grew by 2.2 percent. Total volume growth remained positive and similar to the fourth quarter as the company continues to be more selective in the way we drive volume, including a further reduction in short-term marketing activities in general merchandise and reducing promotions in household ranges.

Tesco added that like-for-like sales in the Republic of Ireland grew by 0.2 percent, reflecting the deflationary effect of its ongoing investment in core food lines. International like-for-like sales were down 3 percent in the quarter, due to a 2.7 percent impact from discontinuing unprofitable bulk selling of products - particularly tobacco and alcohol - in Thailand. Tesco saw a small improvement in performance in Europe, driven by strong growth in the Czech Republic and Slovakia.

Picture:Tesco website