Tesco takes hit on frozen and chilled convenience foods
Tesco’s first-quarter interim financial results have shown a poor performance in its frozen and chilled convenience foods.
However, despite a less-than-impressive performance in its convenience food sector, Tesco reported positive like-for-like (LFL) improvement across all other food categories. “Customers across the UK are embracing ‘Price Promise’ and we are encouraged by performance in our core fresh food categories and uplifts from refreshed stores,” said Tesco chief executive Philip Clarke.
Overall the company saw LFL group sales for the 13 weeks to 25 May improve by 2.7% (excluding petrol) and Clarke noted that plans to put customers back at the “heart of the way we do business” were set out. Total sales, including VAT and petrol, grew by 0.1%.
The supermarket chain saw strong growth in its online grocery business, which was reported to be “the fastest-growing channel” in the market. According to Tesco it has further strengthened its offer and is driving improvements in product availability, quality and overall customer satisfaction.
Clarke said: “While we are not expecting economic conditions to improve in the near term, we have a customer-focused plan for the year in each of our markets, which takes this into account, and we will maintain a disciplined approach to investment and cash flow as outlined in April.”
- online grocery
- food categories
- chilled convenience
- convenience foods
- strong growth
- chilled convenience foods
- executive philip clarke
- lfl group sales
- total sales including
- 7% excluding petrol