Partly Cloudy

Partly Cloudy

max temp: 8°C

min temp: 6°C


Tesco turnaround on track as sales rise 1.9% over Christmas

PUBLISHED: 08:39 11 January 2018 | UPDATED: 08:54 11 January 2018

Tesco says the 1,700 job cuts will imrpove accountability and efficiency. Picture: Nick Ansell/PA Wire

Tesco says the 1,700 job cuts will imrpove accountability and efficiency. Picture: Nick Ansell/PA Wire

Tesco has emerged as a festive winner after reporting a steep rise in sales over the critical Christmas trading period.

The supermarket giant said UK like-for-like seasonal sales rose by 1.9%, driven by a strong grocery performance.

This helped Tesco notch up a 2.3% rise in third quarter comparable sales.

READ: Lidl claims to be fastest growing supermarket after record Christmas footfall

MORE: Cheap veg helps supermarket Sainsbury’s to record Christmas

The figures are a further indication that Tesco’s turnaround under chief executive Dave Lewis is firmly on track.

Mr Lewis said: “We have continued to outperform the market throughout this period, particularly in fresh food, thanks to our most competitive offer for many years.

“Our trading momentum accelerated across the third quarter and into December, with the four weeks leading up to Christmas Day delivering record sales and volumes in the UK.”

Tesco saw its biggest ever sales week in the UK over Christmas, with 58 million customer transactions and 770,000 online grocery deliveries in one week.

READ: Morrisons gives a strong start to festive trading updates from Big Four supermarkets

Food sales grew 3.4% on a like-for-like basis over Christmas, and the only blot was a drag from general merchandise and lost tobacco sales, which the firm blamed on the collapse of wholesaler Palmer & Harvey.

General merchandise comparable sales fell 0.6% over Christmas.

Mr Lewis added: “Incorporating Palmer & Harvey volumes and complexity during this peak period was challenging, resulting in lost tobacco sales across December and putting further strain into our distribution network, particularly post-Christmas.

“Whilst I am pleased to say these challenges have now been resolved, they took the shine off an otherwise outstanding performance for the period as a whole.”

Supermarkets are battling rising costs linked to the Brexit-hit pound, falling consumer confidence and fierce competition in the sector as Lidl and Aldi continue their relentless march.

But Tesco said it is working with suppliers to mitigate inflation and Mr Lewis said consumers are still “cautious” about how they are spending their money.

Suffolk’s food and livestock community has paid a heartfelt tribute to ‘local meat hero’ Charlie Mills, who has died, 
aged 55.

Waving banners and carrying protest placards, more than 200 people marched along Ipswich’s Waterfront today calling for the public to be allowed a say on the Brexit deal.

Young engineering enthusiasts at a Suffolk school have been brushing up their skills as part of a nationwide competition.

Can you see yourself or someone you know in our photo gallery? All pictures were taken at Revolution in Ipswich on Saturday, March 24.

Emergency services were called to the scene of a three-vehicle crash at a busy slip road in Suffolk today.

A new project at Ipswich Hospital is helping hip and knee replacement patients return home faster and is freeing up vital beds.

Unsung heroes who go the extra mile to support their communities took their turn in the limelight as they were honoured at a glittering annual awards ceremony.

Tourism traders in Suffolk are optimistic for an Easter boost following a stunted start to the year, a new survey reveals.

Tickets are now on sale for this year’s PULSE Festival Ipswich, bringing together some of the best contemporary performances and works in progress from established and emerging artists.

Take our news round up quiz to see how news savvy you have been this week.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24