Tesco's focus on the customer pays off with sixth quarter in a row of sales growth
Tesco today reported its sixth consecutive quarter of sales growth after putting the customer at the heart of its strategy.
The supermarket, an Elite retailer in IRUK Top500 research
, reported in a first-quarter trading statement that like-for-like sales grew by 1% across the group and by 2.3% in the UK alone as UK food sales grew by 2.7%, like-for-like.
It said customer transactions grew by 1.3% - or 10m more than last year after a year in which food prices were reduced and improved in relation to competitors.
Chief executive Dave Lewis said: "In tough market conditions, we have stayed true to our commitment to helping customers –working closely with our supplier partners to keep prices low.
"Customers have responded by doing more of their shopping with us and as a result we continue to grow volumes, particularly in fresh food.
"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."
Commenting on the figures, Catherine Shuttleworth, chief executive at retail and shopper marketing agency Savvy
, said: "Another positive result on the Tesco transformation story! As shoppers start to steer through choppy waters of increased inflation and wage stagnation, it will be critical that food retailers provide terrific value every day to their shoppers. That’s not just about cheap prices, it’s about a really relevant range of products for the shopper with great availability and a multichannel platform that can be accessed as and when the shopper decides.
"Tesco seems to be hitting the spot. And as they continue with their mantra of “we don’t welcome inflation” suppliers and Tesco will have to work in partnership to find new and creative ways of ensuring that value is delivered."