Tesco PLC’s First Quarter Trading Statement 2017/18 shows the groups sixth consecutive quarter of growth.
Group like-for-like sales grew by 1.0% for the 13 weeks to 27 May 2017, representing a sixth consecutive quarter of positive growth. Total sales at constant exchange rates were up slightly less at 0.8%, as the year-on-year impact of selling Dobbies, Giraffe and Harris & Hoole more than offset store openings across the Group. At actual exchange rates, sales grew by 3.6% including a 2.9% positive foreign exchange translation effect.
Like-for-like sales in the combined UK & ROI business grew by 2.2%.
In the UK, the firm is entering the third year of positive food volume growth. Fresh food volumes grew by 1.6% in the quarter, underpinned by further improvements across our customer offer.
Total volume growth remained positive and similar to the fourth quarter as Tesco continues to be more selective in the way we drive volume. This included a further reduction in short-term marketing activities in General Merchandise and continuing to reduce promotions in our household ranges, favouring stable, consistently low prices and larger, better value pack sizes.
Tesco has worked hard with its supplier partners to protect customers from inflationary pressures and to keep prices as low as possible. The firm's price position relative to competitors has improved and its efforts to offset inflation have been recognised by our customers with a further improvement in our ‘Trust in Price’ Spotlight measure.
In May, the company launched the next stage of its ongoing commitment to make healthier choices easier for its customers. In addition to further reducing prices on a range of fruit and vegetables, we also lowered prices on over 200 other healthy products.
Through ‘Helpful Little Swaps’, customers were able to purchase a basket of products which not only contained 27% less salt, 38% less sugar and 65% less saturated fat but which was also 17% cheaper than a standard basket. We have now also given away more than 20 million pieces of fruit to children since July 2016.
For a third consecutive quarter, Tesco is seeing the largest increase in the market in the number of customers recommending the supermarket as a preferred place to shop. Availability continues to surpass previous levels, improving by 1.5% year-on-year in the run up to Easter. The firm has continued its programme to bring colleagues closer to customers, including its announcement that a further 69 stores will move from night to day replenishment.
Online grocery saw strong sales growth of 4.8% and Tesco recently introduced a monthly Delivery Saver subscription option to offer greater flexibility for its customers.
Dave Lewis, Chief Executive, stated, “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.”