Fresh sales aid Tesco Q1 growth

Fresh produce, including meat, has helped Tesco to a 0.9% growth in group like-for-like sales for the first quarter of the year. 

In the 13 weeks to 28 May, its UK like-for-like sales rose 0.3%, while international like-for-like sales grew 3%.

The retailer attributed growth to the success of its new fresh ranges, launched earlier this year.

It said: “In the UK, the launch of our seven new exclusive fresh food brands in March has helped to meet more of our customers’ shopping needs, further removing any reasons for them to shop elsewhere. Customers are able to save nearly £1.60 – around 17% – off the cost of a typical basket of 10 of the most popular meat, fruit and vegetable lines by choosing to buy products from the new ranges.”

Tesco also noted that the new fresh ranges had been well-received by customers.

“As expected, a significant number of customers have traded into the new brands, with a total deflationary impact on sales of around (0.7)%. Two-thirds of customers have now bought products from the new ranges, and customer satisfaction scores of quality and taste are exceptionally high, at more than 90%. Customer ratings for the quality of our fresh food offer as a whole have improved to their highest level in more than two years.”

Dave Lewis, chief executive, said: “We have delivered a second quarter of positive like-for-like sales growth across all parts of the group in what remains a challenging market with sustained deflation. In both the UK and internationally, we are putting customers at the centre of everything we do and reconfiguring our business to serve them a little better every day. Our new fresh food brands are performing very well, with over two-thirds of our customers having bought products from the new range.”

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