Overcast

Overcast

max temp: 17°C

min temp: 11°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

UK: Tesco reports best UK sales performance for three years

09:34 10 January 2013

Tesco

Tesco's UK sales revival continued over the key Christmas trading period

Archant

TESCO today revealed its best UK sales growth in three years after its drive to reverse falling profits gathered pace over Christmas.

shares

Like-for-like sales in the UK grew by 1.8% in the six weeks to January 5 after a big improvement in food following last year’s disastrous showing.

Chief executive Philip Clarke said the seasonal performance was encouraging but added there was “a lot more to do” as the market leader looks to recover from last year’s first drop in profits for two decades.

Tesco shares opened 3% higher today. While the sales figure was better than City expectations, it was helped by comparisons with the previous Christmas, when the chain admitted it got its pricing strategy wrong in a performance that wiped billions of pounds from its share price.

Having taken over the running of the UK division last year, Mr Clarke announced today that Chris Bush, who has worked for the company for 30 years, is to join the Tesco board as UK managing director.

Mr Clarke’s turnaround strategy has brought significant investment on a range of initiatives, including an additional 8,000 staff and the launch of its Everyday Value range, which has replaced Tesco Value.

Mr Clarke said today that Everyday Value and its upmarket equivalent, Finest, outperformed the business as a whole, with customers responding to a much stronger seasonal offering in these ranges.

He added that more work was needed to improve Tesco’s performance in general merchandise, although he said the trends were better over Christmas.

In line with other retailers, Tesco said it enjoyed a strong online performance, with food sales growth of 18%. More than half a million food orders were fulfilled in the week before Christmas, with nearly 5% being picked up by customers using its drive-through Click & Collect service.

Despite the UK sales improvement, Seymour Pierce analyst Kate Calvert said it was too early to call a recovery in Tesco’s performance.

She said: “There is still much to be done given general merchandise remains a drag and we believe there will be no visibility on whether UK profits have bottomed until the second half of 2013.”

shares

0 comments

An 
Abellio Greater Anglia train.

Three train operators are in the running for the new East Anglia rail franchise.

The expanded Abberton reservoir in Essex.

The expansion of the Abberton reservoir in Essex has been described by European Investment Bank vice president Jonathan Taylor as an “essential” investment in climate change adaptation technology in the UK.

From left, Jim Davison of EEF, Keith Ferguson of BDO, Paul Nelson of Barclays, and Paul Sparks  and Stephen Cooney, also both of BDO, at the East Anglian Manufacturers Forum event in Ipswich.

Manufacturers in the East of England have reported weaker than expected growth during the second quarter of the year, according to major sector survey.

Neil Darwin, chief executive of the Greater Cambridge Greater Peterborough LEP

The Greater Cambridge Greater Peterborough Local Enterprise Partnership (LEP) has appointed Neil Darwin as chief executive.

Rob Dellow, second from left, of sponsor Atkins Thomson, with, from left Phil Pethybridge, Alex Till and Leanne Castle of Menta, celebrate the launch of 2015 Menta Trade Fair which takes place at the Apex in Bury St Edmunds on Wednesday, September 30.

Suffolk-based enterprise agency Menta has announced the date for its annual trade showcase event.

Chancellor of the Exchequer George Osborne.

Chancellor George Osborne has extended a plan to sell down the Government’s stake in bailed-out Lloyds Banking Group as it was disclosed that the holding has now been cut to less than 19%.

Ian Allchin who heads the new music and media team at Essex law firm Birkett Long.

Law firm Birkett Long, which has offices in Colchester, Chelmsford and Basildon, has launched a music and media team which it believes is the first of its kind in the county.

Hoxne Swan

A bid to make a closed pub an asset of community value has been accepted by the local authority.

Noel Byrne outside the Bedford Lodge Hotel in Newmarket.

The four-star Bedford Lodge Hotel & Spa in Newmarket has entered TripAdvisor’s “Hall of Fame” after winning the travel review website’s Certificate of Excellence for a fifth consecutive year.

Andrew Wheeler of Brewin Dolphin.

Andrew Wheeler, head of the Ipswich office of investment manager Brewin Dolphin, has hailed the firm’s “good progress”.

Most read

Most commented

Topic pages