Tesco like-for-like sales grew by 0.6 per cent during the first half of this year as the UK’s largest retailer said it has “stabilised the business”.
The supermarket also reported that it has seen “very strong improvement in UK supplier satisfaction, at 78 per cent, up from 51 per cent in 2014-15.
Profit before tax fell by 28 per cent to £71 million, due to one-off costs, but the company said it was on track to make £1.2bn in full-year annual operating profit. UK volumes were up 2.1 per cent.
Chief executive Dave Lewis said: “Prices are more than six per cent lower than two years ago, availability and service have never been better and our range is more compelling. Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere.
“While the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilising the business and positioning us well for the future.”
Tesco said results were boosted by its exclusive fresh food brands are performing ahead of plan, while all key customer metrics are improving relative to the market. And it said “brand health” has returned to highest level in more than four years.
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