Home / Knowledge / News / It will be a good Christmas for Tesco customers
It will be a good Christmas for Tesco customers
Dec '09
Chief Executive, Terry Leahy commented:

“We've continued to make good progress this quarter with contributions to growth from across the business. We are seeing improving customer confidence and encouraging trends in both the UK and our international businesses, although recessionary conditions still exist in a number of markets. As ever, with Christmas approaching, we're doing even more for customers with low prices, great promotions, including on our Finest range, and of course double Clubcard points. Our investment in growth – in new space and from the two acquisitions last year – is providing us with good momentum and a strong platform for the future.”

Group Sales

Group sales* for the thirteen weeks ending 28 November 2009 increased by 8.8%, excluding petrol, driven by all parts of our strategy. Growth was 7.7% including petrol.

Strong International Performance

International sales increased by 12.0% at actual exchange rates, excluding petrol (5.4% at constant rates). Growth in Asia was strong – at 18.9% (10.5% at constant exchange rates) – with continued momentum from the acquired stores in Korea and new store openings across the region. In Europe, sales grew by 5.7% (0.6% at constant exchange rates).

International like-for-like sales were encouraging, improving to (3.7)% in the quarter from (6.7)% in quarter two (excluding petrol). We saw a material improvement in both Asia and Europe and as we annualise the worst of the economic downturn around this time last year we expect this trend to continue into the fourth quarter and beyond. In the United States, sales were up 37.4%, with stronger like-for-like sales following the range enhancement and subsequent marketing launch of Fresh & Easy in September.

Solid Growth In Uk Business

We have continued to make good progress in the UK, maintaining steady sales growth while inflation has fallen sharply across the sector, reflecting last year's commodity price increases. Excluding petrol and VAT-adjusted, like-for-like sales for the quarter increased by 2.8%, driven by good volume growth. Net new stores contributed 2.9%, bringing total growth excluding petrol to 5.7%** (4.7% growth including VAT). Including petrol, which has seen substantial deflation, total UK sales including VAT grew by 4.2%.

Customers are responding well to double Clubcard points and welcoming the additional help they are providing in the run up to Christmas. Clubcard is growing in importance as a reason why customers switch to shopping at Tesco. With double Clubcard points and an additional voucher mailing last week, it will be a good Christmas for Tesco customers.

The improving positive like-for-like sales trend in non-food is continuing, with particularly strong growth in toys, electrical and entertainment. Tesco Direct also delivered another strong performance.

In Retailing Services, Tesco Bank is making good progress in developing its own systems infrastructure, with partners now selected for both its insurance and banking platforms. We're growing the number of customer accounts and the increase in bad debts experienced over the last year has now started to stabilise with levels remaining below the industry average. Tesco Bank contributed 1.5% to Group sales growth. In Telecoms, the launch of the iPhone on Tesco Mobile has generated strong interest amongst customers.

Must ReadView All

Apparel/Garments | On 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Textiles | On 29th Jun 2017

Vietnam’s textile & garment exports cross $10bn till May

Vietnam earned $10... billion from textile and garment exports in the ...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search