Tesco sees third consecutive quarter of sales decline
UK like-for-like sales have fallen yet again for Tesco, down 3.7% (excluding petrol), for the first quarter of 2014-2015.
The drop marks three consecutive quarters of like-for-like sales decline for the multiple retailer, which has seen customer spend down as the discounters continue to take market share.
Group sales fell 0.9% (at constant rates, excluding petrol).
Tesco said the quarter had seen a significant improvement for customers, with significant prices cuts on key lines – including beef and chicken mince – and enhanced rewards with its Clubcard Fuel Save scheme.
It said sales volumes on the lines where it had focused its investment were up over 28%.
Philip Clarke, chief executive, said: “Our accelerated plans are making a real difference for customers and we are more competitive than we have been for many years.
“As expected, the acceleration of our plans is impacting our near-term sales performance. The first quarter has also seen a continuation of the challenging consumer trends in the UK, reflecting still subdued levels of spending in addition to the more structural changes taking place across the retail industry.
“We are determined to lead in this period of change, building long-term customer loyalty and positioning the business to win in the multichannel era.”
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