Tesco’s UK sales slide
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Tesco's UK sales fell in the first quarter as cautious customers continued to cut back on spending.
The supermarket reported like for like sales, excluding new store openings and petrol returns, dipped 0.1% in the thirteen weeks to 28 May.
The impact of high petrol prices on discretionary spending was blamed, "a drag on the industry and our own like for like growth", adds chief executive Philip Clarke.
Including petrol income, like for like store sales grew 3.4% in the UK.
The sales reverse, though an improvement on the 0.7% drop registered in the fourth quarter, was worse than the 0.6% growth expected by analysts.
Clarke, who took over from Sir Terry Leahy as CEO earlier this year, recently announced a 7-point plan to boost growth. Measures include creating more brands and growing non-food sales.
The supermarket also plans to increase its use of social media to advance customer engagement.
Despite its UK woes, the company says like for like sales across the business grew 1.6%. Income was boosted by strong growth in the US and Asia and from a 19.9% bump at Tesco Bank.
YouGov Insight:
Tesco
· While 45% of British adults attribute Tesco’s success to its cheap, varied food choices and ability to create jobs wherever it goes, 43% feel that it is ‘too powerful’.
· Despite the view held by many that Tesco is ‘unfair’ – by pricing smaller opposition out of the market – YouGov SixthSense research reveals that 60% of UK consumers still shop at local stores at least once a week.
· YouGov SixthSense records an equal appeal for Tesco among socio-demographic groups
· Usage penetration is strongest in the North (41%) and weakest in London (24%)
· Homebase trails with 21% of shoppers saying they have bought gardening equipment, plants or garden furniture there in the past 6 months.
Readers' comments (1)
Anonymous | Tue, 14 Jun 2011 11:37 am
Blame it on the economy - that seems to be Tesco's stance. However I think that's all a little too easy.
How will the other supermarkets stack up? I suspect it's dislliusion with Tesco's stale and sub-standard offering that has more of an effect, as the other supermarkets nip at their heels. Their sales figures will give better picture.
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