Tesco recorded strong retail sales growth for FY 2021/22, up 35.8% on the previous year to £2.6bn. The supermarket also managed to raise its UK online share to 34.8%. The retailer has also seen users of its Clubcard app hit 9 million.
Overall, Tesco increased its market share in the UK to 27.7% and improved its value perception, with the extension of its Aldi Price Match scheme to 650 products on and offline and the launch of 1600 more low-price items.
The company has also donated 53 million meals through its food redistribution programme and 3 million meals through its Buy one to help a child campaign. The company is also on target to hit its zero carbon target by 2050 across all its operations. It is also planning to open the UK’s first country-wide soft plastics recycling network.
Ken Murphy, Chief Executive, comments: “Over the last year, we delivered a strong performance across the Group, growing share in every part of our business. We did this by staying focused on our customers and doing the right thing for our colleagues, our supplier partners and the communities we serve. In October, we shared the four strategic priorities that will help us to stay competitive, accelerate our growth and ensure that we can sustainably generate strong levels of retail free cash flow. We have already made good progress: our value perception is the strongest it has been for many years; we are building deeper relationships with more customers through the digitisation of Clubcard; and we are serving more customers wherever, whenever and however they want through more convenience stores, more than 100 new Click & Collect sites and the launch of Tesco Whoosh.”
Murphy adds: “Clearly, the external environment has become more challenging in recent months. Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check – working in close partnership with our suppliers, as well as doing everything we can to reduce our own costs. Through our powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices, we are making more products more affordable, in more places than anyone else.”
Analyst Walid Koudmani, chief market analyst at financial brokerage XTB comments: “Tesco provided investors with some positive reassurance showing strong sales throughout the year; Retail 1-yr LFL8 sales growth includes UK market outperformance and sharp recovery along with market share gains. This continues to show how the company is benefiting from the post-pandemic recovery thanks to a normalization of consumer behaviour and as it continues to move forward with it’s share buyback program. However, Tesco remains cautious as it expects to contend with increasing costs and widespread inflation which could once again impact performance if not mitigated appropriately.”
