Tesco posted a robust 8.2 per cent increase in group sales for the 13-week-period ended May 30, 2010. The company’s total international sales also increased by 11.9 per cent at actual exchange rates excluding petrol (5.3 per cent at constant exchange rates).
Terry Leahy, chief executive, Tesco, said, “Tesco has made a solid start to the new financial year. We’re making good progress with our strategy: investing in the shopping trip for customers; driving strong productivity gains; growing space and winning market share. The long-term global recovery is well underway although the pace and strength of economic recovery varies across our markets. We’re in good shape and well-positioned to deliver further growth as the economic environment continues to improve.”
In addition to an encouraging total international sales, the sales performance in Asia was also impressive, with 15.4 per cent growth (4.9 per cent at constant exchange rates).
“The growth was supported by new store openings across the region, although it was held back temporarily by the effects of political uncertainty in Thailand and Korea, which are now easing,” Leahy said.
In Europe, sales, excluding petrol, grew by 7.3 per cent (4.3 per cent at constant exchange rates). Ireland’s impressive sales recovery continued, offset by a late spring in Central Europe, the period of mourning in Poland and the ongoing economic difficulties in Hungary.
International like-for-like sales performance was steady compared with the previous quarter and was broadly flat overall – slightly negative in Asia and slightly positive in Europe.
In the United States, sales were up 37.8 per cent (40.6 per cent at constant exchange rates), with high single digit like-for-like sales driven primarily by increased customer numbers.
Similarly, the company’s UK business performed well, growing faster than the industry as a whole. Total sales, including VAT and petrol, grew by 6.5 per cent.
“Although customers in the UK continue to face some uncertainties about their personal finances, we continue to see evidence of a steady consumer recovery. For example, we’re continuing to see good growth in our finest range and non-food like-for-like sales growth remained positive during the quarter; our market share in games, which doubled last year, continues to grow and our sales of televisions are up strongly as a result of our successful World Cup marketing campaign,” Leahy maintained.
— IndiaRetailing Bureau