As customers start to trade up, Tesco anticipates a successful holiday season.
- CEO Ken Murphy reports stability in customer sentiment and increased willingness to spend.
- Tesco’s premium range sales have risen by nearly 15% in the first half of the year.
- The company has announced a 10% increase in half-year profits and a 4% rise in sales.
- A new Christmas range with over 250 products is expected to bolster seasonal offerings.
As the festive season approaches, Tesco is optimistic about its sales prospects, driven by a shift in consumer behaviour towards more premium products. According to CEO Ken Murphy, “We track customer sentiment every week and while they’re not doing cartwheels down the hallways, they are in really good shape.” This indicates a stable sentiment from customers, which is reflected in their increased spending on higher-end products.
In the first half ending 24 August, Tesco observed a noticeable uptick in sales volumes, particularly in fresh food and its premium Tesco Finest range, which experienced a significant 15% increase. The grocery giant has also reported a 10% rise in half-year profits alongside a 4% increase in sales, amounting to £31.5 billion.
Ken Murphy expressed confidence in Tesco’s comprehensive planning for the holiday season, stating that the company is “gearing up for a good Christmas.” He emphasised the importance of value and variety in their product range, aiming to enable customers to celebrate affordably with friends and family. Despite acknowledging the inherent risks in forecasting holiday sales, Murphy is optimistic, citing positive customer trading patterns and strong product offerings.
To further enhance their holiday proposition, Tesco has launched a new Christmas 2024 food and drink range, featuring over 250 new items. This selection includes innovative party foods such as mushroom steamed buns and mini nduja wellingtons with hot honey drizzle. The expanded range is part of Tesco’s strategy to attract more customers by enhancing the festive shopping experience.
Tesco remains optimistic about a prosperous holiday season, driven by a strategic focus on premium products and comprehensive customer satisfaction efforts.
