Essential reading for retailers and suppliers in the home improvement market

Tesco reap the benefits of Christmas rush

Published: 10 January 2019 - Kiran Grewal

In the core Tesco UK business, third quarter like-for-like sales increased by 0.7%, representing the company's twelfth consecutive quarter of growth. In a more challenging market, Tesco said it made significant further improvements to its customer offer. Over 74% of its 10,000 own brand products had been relaunched by the end of the third quarter, with the roll-out of its ‘Exclusively at Tesco’ range 95% complete. As expected, Tesco said, and following a step-up in the marketing of ‘Exclusively at Tesco’, saw an increase in customers trading into the exceptional value offered by these products. Whilst this, and the initial disruption as it rolled out the new ranges impacted the value of like-for-like sales, by the end of the third quarter overall UK sales volumes were outperforming the market.

 

This positive momentum continued into the Christmas period where Tesco's like-for-like sales grew by 2.2%, outperforming the market in both volume and value terms.

The company's online like-for-like sales increased by 2.6% over the Christmas period. In general merchandise the popularity of our exclusive Fox & Ivy homeware and Go Cook cookware ranges contributed to overall like-for-like sales growth of 7.7% in these categories during the 19-week period. This helped to partially offset an overall decline in general merchandise sales which impacted overall UK like-for-like performance in the period by (0.2)% as Tesco continue to reposition its offer, the business said. Clothing sales increased by 3.8% during the period, aided by a particularly strong womenswear performance.

Like-for-like sales in the Republic of Ireland were flat over the 19-week period, against a strong performance last year. In a more competitive market, driven by increased couponing activity, customers responded well to the Christmas offer with positive volumes across key fresh categories.

Dave Lewis, chief executive of Tesco plc, said: “As a team we have achieved a lot in the last 19 weeks. In the UK we delivered significant improvements in our competitive offer and this is reflected in a very strong Christmas performance which was ahead of the market.

"We have more to do everywhere but remain bang on track to deliver our plans for the year and as we enter our centenary we are in a strong position.”

 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


How important is the pest control category to your business?



Latest reader comments

re: A guide to construction safety for home builders

Daniel Wood
Safety should always be the first priority. If followed properly, these precautions are all we need to tackle all unwanted accidents. I ...

re: Further Homebase closures ahead

Shaun Collorick
Cheltenham homebase has closing down signs outside, but not Gloucester homebase.... Yet!...

re: B&Q sales slide, as Screwfix decision to exit German market costs millions

B&Q bob
No surprises from us on the shopfloor management paralysed by fear of jobs and to weak to take chances so bumble around. Ranges boring, and ...

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl
I HOPE GRAHAM BELL THE NEW CEO OF B&Q GETS TO GRIPS OF THE COMPANY VERY SOON.MY WIFE WENT FROM SHADOXHURST TO GILLINGHAM TO GET SOME ...