Tesco reports strong festive performance as group sales jump 7.5%

TESCO – spearheading a supermarket price war in Ireland – said it had a very strong performance over Christmas, reporting the best results in three years.

It said group sales globally jumped 7.5% during the six weeks to January 9.

The supermarket giant does not break down the figures for its Irish operations, but it has said thata massive price cut initiative has proved very popular.

It said champagne sales jumped 35% on last year over Christmas as customers were “looking for ways to treat themselves”.

Tesco chief executive Terry Leahy said: “We’ve delivered a very strong performance over the Christmas and new year period. It was a great Christmas for Tesco customers with an excellent seasonal range in store and online.”

British like-for-like sales, which excludes new store openings, rose by 4.9% in the six weeks to January 9.

Tesco’s Finest range sold “particularly well” and non-food sales were boosted by growth in clothing, electrical goods and toys.

Tesco added that online sales had grown by nearly 20% in the period.

Its overseas businesses saw continued growth over the Christmas and new year period, delivering a total international sales increase of 4.1% at constant exchange rates. In Europe sales grew by 0.8% at constant exchange rates.

Its American operation, Fresh & Easy had a stronger Christmas and New Year period than last year, with total sales growth of 35%.

Richard Hunter, head of British equities at Hargreaves Lansdown Stockbrokers, described Tesco’s sales growth as “formidable”.

“Not only has the performance been underpinned by its staple products, non-food items such as electricals and clothing and the overall international contribution have impressed,” he said.

Tesco said online sales were very strong in both food and non-food with total online sales growth approaching 20% in the six weeks.

Tesco launched its Change for Good campaign in Ireland in May.