Published on 6 - October - 2009
Tesco non-food delivers "strong performance"Supermarket giant's group sales grow 8.3% in first half, boosted by an 8% increase in non-food sales.
Tesco Direct extends the reach of the grocer's non-food offer
Tesco's trading statement for the 26 weeks to August 29 revealed an 8% growth in its group non-food sales to £6.2bn - £4.3bn in the UK and £1.9bn internationally.
The grocer explained: "Our non-food business has been very resilient through the downturn and we are confident it will emerge from the recession even stronger as some competitors have felt the strain and more customers will have been encouraged to try our non-food range in the search for great value."
Tesco delivered a strong non-food performance in the UK with like-for-like sales growth in the second quarter and total growth of 4.9% in the 26-week period. Its international non-food performance, which includes Homever and Homeplus in Korea, grew 16%.
The interim statement added: "A number of hardlines categories had double-digit like-for-like growth including electricals... Home categories, which had been particularly hard hit with the slowdown in the housing market, are now growing."
Tesco Direct, which the company admits, "extends the reach" of its non-food offer, saw a 29% sales growth in the first half and is "continuing on its path towards profitability".
Total UK sales for the supermarket chain were up 2.8% to £20,651m, with a trading profit increase of 7.4% to £1,155m. Its gross margin improved slightly to reach 6%.
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