Tesco continues to grow rapidly on an international level and increase its presence in Asia, despite difficulties in handling the market on home soil.
Tesco reported overall group sales for the 13 weeks ending May 30 increased by 12.6 per cent, excluding petrol, driven by all parts of its strategy, while growth registered at 9.7 per cent including petrol.
International sales increased by 20.1 per cent at actual exchange rates (11.4 per cent at constant rates), including a moderate European performance with sales growth of 1.9 per cent. Growth in Asia was much stronger at 43.8 per cent, with exchange rates in Tesco’s favour and strong performances from its converted Homever stores in Korea.
In the US, Tesco reports the number of customers has grown strongly and sales grew by 174 per cent.
In a statement, the retailer said: “Our international operations, particularly those in Asia, have delivered another strong start to the year, our non-food business has seen good market share gains and a resumption of like-for-like growth, the core UK business has delivered solid, stable growth in a market where inflation is falling, and our retailing services are continuing to attract new customers.
“Operationally the business is performing in line with expectations and the outlook for the year as a whole remains unchanged.”
Tesco ceo Sir Terry Leahy said: “We've made a solid start to the financial year, maintaining good momentum in a challenging economic climate - by investing in our offer for customers and adjusting our businesses well locally to meet their changing needs.
“We are also keeping a strong focus through the downturn on our long-term strategic objectives and I am encouraged by the impetus last year’s acquisitions - of Tesco Personal Finance and Homever in Korea - are now giving the group.”
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