FILE PHOTO: A person seems at merchandise on a shelf inside a Tesco Further superstore close to Manchester, Britain, January 8, 2020. REUTERS/Phil Noble/File Picture
June 18, 2021
By James Davey
LONDON (Reuters) -Tesco, Britain’s greatest retailer, reported a pointy slowdown in underlying UK gross sales development in its first quarter, reflecting a tricky comparability with the identical quarter final yr when shoppers stocked up within the nation’s first COVID-19 lockdown.
The group stated UK like-for-like gross sales, excluding gas and VAT gross sales tax, rose 0.5% within the 13 weeks to Might 29 – forward of analysts’ common forecast of a fall of 1.0%, however down from development of 8.8% within the earlier quarter.
Towards the identical quarter in 2019, earlier than the pandemic impacted buying and selling, UK like-for-like gross sales have been up 9.3%.
Tesco, which has a 27% share of Britain’s grocery market, stated development was pushed by prospects consuming extra meals at residence than earlier than the pandemic.
On-line gross sales have been up 22.2% year-on-year and up 81.6% on a two yr foundation.
The group flagged significantly sturdy contributions from normal merchandise and clothes, with like-for-like gross sales up 10.3% and 52.1% year-on-year respectively.
Tesco stored its revenue steerage for the 2021-22 fiscal yr.
“Whereas the market outlook stays unsure, I’m happy with the sturdy begin we’ve made to the yr and proceed to be excited in regards to the many alternatives now we have to create worth over the long term,” stated Chief Govt Ken Murphy.
Tesco has stated it expects full-year retail working revenue on a seamless operations foundation to be much like 2019-20.
Rivals Sainsbury’s and Morrisons have additionally forecast a powerful restoration in earnings this yr as the additional prices of the pandemic scale back.
Shares in Tesco closed on Thursday at 231 pence, valuing the enterprise at 18 billion kilos ($25 billion).
($1 = 0.7203 kilos)
(Reporting by James Davey Modifying by Sarah Younger and Mark Potter)