Tesco experiences significant growth in its clothing sector, boosting non-food sales.
- Over the quarter, Tesco’s non-food sales increased by 0.7%, underpinned by a strong performance in clothing.
- Total sales in the UK and Ireland reached £14.3bn, marking a 4.1% year-on-year increase.
- The company forecasts a retail adjusted operating profit of at least £2.8bn for the full year.
- Tesco’s market share has expanded, with customers increasingly switching from other retailers.
Tesco has reported a notable increase in its non-food sales for the quarter ending 25 May 2024, with a growth of 0.7%. This uplift is primarily driven by the strong performance in the clothing segment, reflecting the company’s strategic focus on enhancing its fashion offerings.
Sales in the UK and Ireland achieved a total of £14.3 billion, which represents a 4.1% rise compared to the previous year. This increment underscores the positive impact of the robust clothing sales, contributing significantly to the overall financial performance.
Looking ahead, Tesco projects a retail adjusted operating profit of at least £2.8 billion for the entire fiscal year. This forecast is indicative of the company’s strategic efforts and confidence in sustaining its growth momentum.
Chief Executive Officer Ken Murphy attributed this success to several factors, including eased inflation rates and a competitive market positioning. He stated that Tesco maintains its stance as the cheapest full-line grocer, with superior value, product quality, and service enhancing customer satisfaction and brand perception.
Moreover, Tesco’s market share has seen an increase not observed in the past two years. This growth is largely due to customers migrating from competitors, leading to more frequent shopping and increased basket sizes at Tesco.
Tesco’s commitment to strengthening its clothing sector has evidently paid off, solidifying its market position and driving its sales growth.
