SUPERMARKET giant Tesco’s recovery has continued with a 2.3 per cent rise in like-for-like sales in the first quarter of 2017 – its sixth consecutive month of growth.
A 2.7 per cent rise in food sales was the main driver for the growth, with the company reporting a “significant outperformance” in volumes of fresh food, which were up 1.6 per cent on the back of reduced fruit and vegetable prices.
The retailer appears to be reaping the benefits of working with suppliers to offer customers lower prices, with a focus on fresh food and healthy products, in the face of rising inflation, which surged to a higher than expected 2.9 per cent last month.
Tesco is also pledging further price reductions.
The UK’s largest supermarket chain, it has been working hard to turn itself around and win back market share after one of the biggest losses in UK corporate history in 2015 – £6.4 billion before tax.
Chief executive Dave Lewis said: “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.
“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.”
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