Fresh food helps Tesco to solid Q1 growth

Tesco has reported increased income and volume sales for the first quarter.

The grocery market leader announced total retail sales of £15.3 billion, excluding fuel, for the 13 weeks to 25 May. That represents a 3.4 per cent like-for-like increase.

In the UK food sales rose five per cent, with strong volume growth and Tesco noting that fresh food had performed particularly well. Sales of its premium Finest line also grew at 12.5 per cent.

Booker saw core retail sales up 1 per cent with further improvements in availaiblity and 204 net new retail partners. Core catering sales also rose by 2.2 per cent.

Chief executive Ken Murphy said: “We’ve continued to build momentum in the business, with strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation.

“We continue to be the cheapest full-line grocer and are the most competitive we’ve ever been, with our value, product quality and service driving better brand perception and customer satisfaction.

“Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets.

“Following another strong quarter, we’re pleased to reiterate our guidance for the full year, with sales trends in line with our expectations and the business well-positioned for the months ahead.”