Tesco saw a 2% rise in UK like-for-like sales during the third quarter and was boosted by its “Discounter” range, the retailer said today.
Despite “strong economic headwinds”, Tesco said group sales increased by 11.7% in the 13 weeks to 22 November 2008 and total sales were up 5.9% in the UK.
Chief executive Terry Leahy, revealing 300,000 more people are shopping at the supermarket each week, said: “Tesco has maintained solid progress in sales and profits during the third quarter across the group.
“We are pleased with our progress but we are also realistic – the current economic climate, and the strain this is putting on consumers everywhere, is something that all businesses are feeling, including ours.”
Analysts had predicted this week that Tesco would post like-for-like growth of 1.9% – its worst performance since the early 90s.
Tesco said its discount range now accounts for 5% of its overall grocery sales, but this has had an impact on its financial results.
The company added: “By giving customers more affordable choices, we have deflated our sales during the quarter by between two and three percentage points.”
Prior to the figures being announced, TNS Worldpanel said that shoppers are switching from Tesco at record rates, in favour of rivals such as Asda and Aldi.
Worldwide, Tesco said sales were up 28.1% at actual exchange rates with an especially strong performance in Asia (sales grew there 29.4%).
The firm’s Fresh & Easy stores in the US “moved strongly into like-for-like growth”, it added, without giving figures.
Last month, Tesco announced that it would be cutting back its US expansion plans due to the global financial crisis.
What are your views on Tesco’s latest set of sales figures? Will sales pick up in the new year or is this just the start of the gloom for the retailer? Make a comment below.
