Tesco this morning (Tuesday) reported strong growth and record sales over the Christmas and NewYear period.
Excluding petrol, like-for-like UK sales increased by 7.6 per cent and Tesco proclaimed itself "delighted" to have delivered its best-ever Christmas for customers.
The rate of growth in this period is similar to that reported in Tesco’s third quarter statement, despite a price-cutting drive that has seen prices, excluding petrol, fall by 1.6 per cent in the seven weeks to January 8.
Freshinfo reported last week that Tesco has reinforced its leadership of the grocery sector in recent months, its share of total consumer spending reaching a new level of 29 per cent. While food sales are integral to that, non-food sales were worth about £7bn to Tesco last year and have played a large part in the growth process.
International sales also continue to grow - by 16.1 per cent over the Christmas and New Year trading period, despite tough trading conditions in some central European markets.
Tesco’s statement said: "The group's strong sales performance means that, despite higher energy and fuel costs and adverse movements in exchange rates, we remain confident that our out-turn for the year will be in line with current market consensus.”
Finance director Andrew Higginson said the company aimed for growth of around 3-4 per cent this year. "Consumers have a choice of places in this country where they can shop, and they make that choice every week. If we do a bad job they will go somewhere else," he said.
Tesco’s results are released on the back of disappointing Christmas trading statements by Sainsbury's, M&S, and Morrisons.
"This company is powering away from the competition - it is a stellar performance," said BBC business editor Jeff Randall. "People have been asking: where did all those customers go from Sainsbury's and Marks & Spencer? Now we know, they went to Tesco.”
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