Tesco has reported a 1.8 per cent rise in like-for-like sales for its UK business over Christmas, its strongest growth rate for three years. The UK-based retail giant today (10 Jan) announced its trading results for the festive season for the six weeks to 5 January, hailing a stronger performance by its domestic business.
After a difficult year for the retailer, it seems as if its £1 billion restructuring plan for its UK business, Build a Better Tesco, has started to bear fruit. Its sales improvement was underpinned by a strong food performance, with its Tesco Finest and the relaunched Everyday Value private label ranges 'outperforming' the business as a whole.
Christmas 2011 was a more difficult period for Tesco, with like-for-like sales down 2.3 per cent. This year, the retailer saw added sales come through its various multichannel arms, with over half a million online grocery orders placed in the week leading to up to Christmas, with online food sales growth of 18 per cent. Almost five per cent of online orders were made through its Click & Collect service and Tesco Direct sales were up by more than 16 per cent.
Its general merchandise performance was weaker and "still a drag on our overall rate of growth", with CEO Philip Clarke hinting that the retailer may move away from the category, to "refocus the business on sustainable, profitable categories in the coming year."
Tesco has also announced two major appointments, with Chris Bush appointed as the new UK Managing Director. Bush has previously held COO and CEO roles in Tesco's second and third largest markets respectively and more recently has held the role of UK COO. Former Amazon UK managing director, Robin Terrell has taken on the role of multi-channel director as Tesco embraces new formats. (10 Jan)
© 2013 - ESM: European Supermarket Magazine
