Tesco like-for-like sales hold-up
Tesco has today reported like-for-like sales up 1.1% in the 13 weeks to the end of May. However, while the 1.1% increase in like-for-like sales is higher, at least on the surface, than many had expected, if you strip out January's VAT increase this falls to a much lower 0.1% like-for-like increase in sales. Total group sales rose by 8.2% and if you strip out petrol sales it was still an impressive 6.9%.
The company is seeing evidence of a steady recovery in consumer confidence and consumer spending although many believe this trend could come under pressure in the second half of 2010 if European debt problems persist. However, Tesco now generates a significant amount of income from overseas operations with sales in this area increasing by 11.9% at actual exchange rates. Specific areas of interest include Asia, with growth of 15.4% over the period, Europe with growth of 7.3% and the United States of America where sales were up 37.8%.
There is no doubt that the company is now looking overseas for growth opportunities of the future although the UK will always remain the backbone of the group. We await figures from Sainsbury's later this week which are expected to show the strength of the UK supermarket sector is starting to flounder amid subdued food price inflation.
Share this..
Related stories
Shop for what you need not what you want
Although the above phrase may sound a little vague and potentially unhelpful, everybody who has ever been shopping will know that ultimately the vast majority of your money is spent on items that you never intended to buy when you left home. This particular situation is common across the board from buying clothes to electrical equipment to the weekly supermarket shop. So how can you reduce how muc...
Read MoreMobile users waste free minutes
Brits with mobile phones waste over 100 inclusive minutes every month, according to uSwitch.Although two-thirds of contract-holders receive an average of 257 peak and 257 off-peak minutes included in their monthly charges, only two of the six main service providers offer a rollover system.The average monthly contract also includes 299 peak texts and 244 off-peak texts, yet 73 of these are unused b...
Read MoreBritish Gas to reduce bills by 7%
Centrica, the owner of British Gas, has today released plans to reduce the average gas bill by 7% which will save UK households on average £55 a year. The company has confirmed the reduction will be implemented immediately and will benefit nearly 8,000,000 families in the UK who have seen their monthly budgets stretched of late. So why has British Gas chosen now to reduce its bills? This annou...
Read MoreWhich? responds to Ofgem switching figures
Which? has responded to figures showing that the number of consumers switching energy provider last year hit a five-year high. Research conducted by the UK energy watchdog Ofgem found that the number of switchers in 2007 climbed to 5.1 million. Siobhan Parker of Switch with Which? welcomed the trend which she said is evidenc that "consumers are using their buying power and taking their business el...
Read MoreSmart meters will only save £26 a year on energy bills
10/09/2014 Smart meters, which are due to be installed into every home in Britain by 2020, will only save consumers 2%, or £26, on their annual bills. The Public Accounts Committee, a committee who look into parliaments spending, have advised that even though the smart meters may help consumers reduce their energy consumption, they will only save 2% on their bills annually. Installing the m...
Read More