Tesco sees 10th consecutive quarter of growth
Written by Chris Lemmon
Tesco has published its trading results for the first quarter of 2018, revealing positive like-for-like sales growth for a tenth consecutive quarter.
Group sales were up 1.8 per cent, with UK and Ireland recording 3.5 per cent growth. Since consolidating Booker on 5 March 2018, the cash and carry company has seen sales grow 14.3 per cent – driven by a strong underlying performance and new business contracts.
The retailer also announced plans to close its online non-food business Tesco Direct during the quarter, with the service due to cease trading on 9 July 2018. Tesco hopes that the move will be an essential step to establishing a more sustainable non-food offering.
Tesco Bank sales increased by seven per cent in the quarter, with secured lending forming an increasingly significant part of the portfolio. Mortgage products now comprise 27 per cent of the overall lending portfolio, up more than four percentage points year-on-year.
“Our growth plans are on track and we are pleased with the momentum in the business,” said Dave Lewis, chief executive of Tesco. “We remain well-placed to serve our customers better and deliver on our medium-term financial ambitions. We are delighted with initial progress on Booker, and are focused on delivering the synergy benefits that our merger brings.”