Tesco reports continued strong performance in Q1

Tesco has today posted its sales performance for the First Quarter covering the 13 weeks ended 29 May 2021.

The UK showed a continued strong performance with growth on top of exceptional sales last year. The details are as follows:
• Two-year LFL growth of +9.3% includes retained benefit of customers consuming more meals at home vs. pre-COVID-19; peaked in March at +14.6% and moderated in April/May as restrictions eased
• Online demand remains high at 1.3m orders per week with two-year sales growth of +81.6%; one-year sales growth of +22.2% reflects annualisation of surge in capacity in April last year
• Particularly strong contribution from GM and clothing (one-yr LFL: +10.3% and +52.1% respectively)

Tesco committed to delivering great value at a time when customers need us most:
• Maintained ‘Aldi Price Match’ on >500 lines; strengthened price position against all key competitors
• Clubcard Prices rewarding loyal customers; now extended to all 1,844 Express stores
• Customer satisfaction remains ahead of Rest of Big 4; value, brand and quality perceptions all stepped forward, on top of last year’s strong improvements

ROI: Sales decline reflects exceptionally strong performance last year; two-year like-for-like sales of +13%, Last year’s growth reflected earlier lockdown and higher conversion of ‘out of home’ consumption.

Booker is recovering strongly as hospitality sector reopens:
• Catering LFL sales increased by +68.1% including a significant recovery in Best Food Logistics’ sales
• Retail LFL sales declined by (4.3)% trading over significant growth in prior year of +23.8%

Ken Murphy, Chief Executive, said, “We delivered a strong performance in the first quarter, even as we lapped the high demand of last year due to the pandemic. We have further strengthened our commitment to delivering consistent, reliable value and to rewarding loyalty, as we extended Clubcard Prices to all Express stores.

'Our colleagues continue to do a great job serving our customers, and I thank them for everything they’re doing. We remain focused on delivering great value, increasing loyalty and further developing our digital platform so we can serve our customers when, how and where they want.

'Our profit guidance from April remains unchanged. While the market outlook remains uncertain, I’m pleased with the strong start we’ve made to the year and continue to be excited about the many opportunities we have to create value over the longer term.”