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Tesco posts sixth consecutive quarter of sales growth

Staff Writer | June 16, 2017
Tesco reported growth in sales in the first quarter of its financial year, marking the sixth consecutive quarter of growth.
Tesco   Like-for-like sales rose by 1.0% year-on-year
Tesco said like-for-like sales in the 13 weeks ended May 27 rose by 1.0% year-on-year, as 2.3% growth in the UK offset a a 3.0% decline in the international business.

In the UK, Tesco said sales growth was boosted by a 1.3% rise in customer transactions and "particularly strong" volume growth in fresh food of 1.6%.

In order to "protect" customers from inflationary pressures resulting from the weak pound, Tesco said it has continued to work with its suppliers so that it can keep lowering the prices of its products, with a particular focus on fresh food and "healthy" products.

In the international business, Tesco said the sales fall reflects its decision to discontinue "unprofitable" bulk selling activity in Thailand.

"In tough market conditions, we have stayed true to our commitment to helping customers - working closely with our supplier partners to keep prices low. Customers have responded by doing more of their shopping with us and as a result we continue to grow volumes, particularly in fresh food," Chief Executive Dave Lewis said in a statement.

"This is a good start to the year, with our sixth consecutive quarter of positive like-for-like sales growth across the group. We are confident in our plans to create long-term, sustainable value for our key stakeholders and to deliver on the ambitions we have set out," he added.