Tesco reports a 3.4% increase in sales, with clothing driving non-food growth.
- Non-food sector sales at Tesco rose by 0.7% for the quarter, thanks to strong clothing performance.
- Sales in the UK and Ireland hit £14.3bn, marking a 4.1% increase year-on-year.
- Tesco expects an adjusted operating profit of at least £2.8bn for the fiscal year.
- CEO Ken Murphy attributes growth to value, quality, and improved brand perception.
Tesco has experienced strong growth in its clothing segment, contributing to a 3.4% rise in overall sales for the 13 weeks ending on 25 May 2024. The non-food sector, led by clothing, saw a notable increase of 0.7% during this period. This underscores the success of Tesco’s strategic focus on enhancing its clothing offerings.
In the United Kingdom and Ireland, Tesco’s sales reached £14.3 billion, showing a robust year-on-year growth of 4.1%. This performance reflects the easing of inflationary pressures and the company’s successful efforts in attracting more customers through competitive pricing and high-quality products.
For the entirety of the fiscal year, Tesco has projected an adjusted operating profit of no less than £2.8 billion, signifying confidence in its ongoing strategies and market position. This forecast aligns with the company’s current momentum in its core markets.
Under the leadership of CEO Ken Murphy, Tesco has managed to solidify its position as a leading grocer, with Murphy highlighting the company’s unparalleled value and customer service as vital factors in improving brand perception. This has resulted in increased market share, with more customers shopping frequently and purchasing larger quantities of goods.
Tesco’s commitment to expanding its clothing division was further demonstrated with the enlistment of Kate Ferdinand as the face of its Active sportswear line in December, and the introduction of a young fashion brand by Poeticgem, affiliated with the PDS Group, for Tesco’s F&F fashion label.
Tesco’s strategic focus on its clothing division has enhanced its growth trajectory and strengthened its market presence.
