Tesco reports sixth consecutive quarter of growth despite ‘tough market conditions’

Tesco has reported a sixth consecutive quarter of growth for the 13 weeks ending 27th May, 2017.

The supermarket chain saw a slight rise of 1% in like-for-like, whilst UK like-for-like sales increased by 2.3%.

This growth was driven by the 2.7% like-for-like sales increase in food and 1.3% growth in customer transactions, which is ten million more than compared to the same time last year.

In addition, like-for-like sales in the combined UK and ROI business grew by 2.2%.

International like-for-like sales, however, were down by 3.0% in the quarter, which the supermarket says is due to a 2.7% impact from discontinuing unprofitable bulk selling of products - particularly tobacco and alcohol - in Thailand.

On the other hand, Tesco Bank recorded a sales rise of 4.8% in the quarter, which was supported by a significant increase in secured lending following the launch into the intermediary mortgage broker market in April 2016.

Dave Lewis, chief executive of Tesco, 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.”