Tesco reports a notable growth in group sales, driven significantly by clothing.
- The supermarket giant has experienced a 3.5% rise in group sales over 26 weeks.
- Key to this success is a robust performance in the clothing sector, despite not releasing specific figures.
- Transitioning partnerships, such as with The Entertainer, have influenced sales figures.
- Plans include relaunching the F&F clothing range online, enhancing the Tesco marketplace.
Tesco, a leading supermarket chain, has reported a 3.5% increase in group sales, totalling £31.4 billion over a 26-week period ending on 24 August. This growth is attributed largely to a strong performance in its clothing division, although exact sales figures were not disclosed.
During the reported period, Tesco’s clothing and home sales rose by 0.3%. This figure includes an impact of 1.3 percentage points due to the transition to a new partnership with The Entertainer for toys, where Tesco has shifted from recognising toy sales to earning commission income. Excluding this, home and clothing sales experienced a rise of 1.6%.
The company anticipates its retail adjusted operating profit for the full year to reach around £2.9 billion, an increase from its previous forecast of at least £2.8 billion. Tesco’s chief executive, Ken Murphy, attributed this success to efforts in enhancing value, quality and service for customers, with notable improvements in customer satisfaction scores across various measures.
Murphy highlighted Tesco’s strategy of cutting prices on numerous products and collaborating with suppliers to launch or improve over 860 items as key contributors to its satisfactory financial performance.
Looking ahead, Tesco is poised to relaunch its F&F clothing line online, six years after its non-food website was shut down. This move is part of a broader strategy to expand its Tesco marketplace, which was launched in June and offers over 150,000 products in categories like garden, homeware, pet care, and toys.
Tesco’s robust performance in the clothing sector underscores its strategic efforts to enhance customer offerings and market presence.
