Strong customer offer delivers volume growth and market share gains, supermarket says
British supermarket chain Tesco has reported better-than-expected results for the first half (H1) of the financial year.
The UK’s number one grocery retailer in terms of market share (27 per cent) said group sales grew by 4 per cent to £31.5bn over the 26 weeks to 24 August 2024, compared with the same period last year.
It also reported an adjusted retail operating profit of £1.6bn (up 10 per cent) and strong market share gains in the UK (up 62bps).
Tesco chief executive Ken Murphy said improved customer satisfaction, thanks to Tesco efforts to deliver value, quality and service, was behind the growth in sales and profit.
He described the supermarket as being in “good shape”, putting the business in a strong position for further investment.
“Our strong momentum allows us to continue to focus on value, quality, innovation, and the broader customer experience, whilst investing in growth opportunities in a disciplined, returns-focused way,” he said.
Murphy said Tesco had lowered prices on thousands of lines, as well as launched or improved over 860 products in partnership with its suppliers and growers, over the past six months.
“The combination of price, quality and innovation means we are competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years,” he said.
During the same period, Tesco also reported that volume sales of its premium-tier Finest range rose 14.9 per cent year-on-year. At the same time, the retailer opened 44 stores across the group (26 in the UK, 7 in ROI and 11 in Central Europe), and refreshed a further 182.
Looking ahead, Tesco said it is on track to open a new chilled distribution centre in Aylesford in Summer 2025, where it will use robotic automation to streamline operations and improve efficiency.
Thanks to its better-than-expected H1 results, the retailer has adjusted upwards its full-year retail operating profit forecast to £2.9bn.
