Fresh food growth drives record Xmas sales at Tesco

Randall Padilla
January 12, 2018

Tesco's sales in Central Europe increased by 0.6 per cent but Asia declined by 11.1 per cent, resulting in a group like-for-like sales growth of 0.6 per cent for the quarter.

In the four weeks before Christmas Day Tesco enjoyed "record sales and volumes" and in the first week of December Tesco reported its biggest ever week of sales, outstripping the market by almost four per cent in fresh food.

The retailer also said food sales were down, by 0.4%, for the 13 weeks to 30 December - though both figures were slightly better than the City had expected.

Tesco said all its formats, covering stores and online, had performed well, resulting in record sales and volumes in the four weeks leading up to Christmas Day.

To the other end of the market and Waitrose - part of the John Lewis Partnership - reported gross sales of £928mln, up 1.5% versus a year ago on a like-for-like basis.

Food sales grew 3.4 per cent on a like-for-like basis over Christmas.

United Kingdom supermarket retailer Tesco posted its eighth consecutive quarter of positive sales growth, with its clothing sector performing well throughout the Christmas period as its F&F ranges continue to prove popular with customers.

Supermarkets Morrisons and Sainsbury's also suffered in the wake of the slump, drifting down 3.3p to 226.2p and 5.3p to 248.6p respectively.

M&S dropped 6.8 per cent to close at 302½p after it reported a 1.4 per cent fall in like-for-like festive sales, with both food and clothing sales declining. The hard discounter claimed to be the UK's fastest growing supermarket during the four weeks to 31 December 2017.

Like-for-like sales in the United Kingdom went up 2.3%, having increased 2.1% in the second quarter.

Price investment before Christmas and a strong performance from seasonal lines helped late trading, M&S added.

Fiona Cincotta, analyst at City Index, said: "Retailers were out of favour throughout the day, following disappointing numbers from Marks & Spencer".

Steve Rowe, chief executive of M&S, added: "In our food business, ongoing trading pressures continued in the lead-up to Christmas as consumer spending and choices reflected tighter budgets".

Other reports by AllAboutTopnews

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