Saturday 17 March 2018

Tesco returns to sales growth - Kantar

Tesco overstated its first half profit by £250m.
Tesco overstated its first half profit by £250m.

Britain's biggest supermarket Tesco returned to sales growth for the first time since January 2014, industry data showed on Tuesday, indicating measures introduced by new boss Dave Lewis are having a positive impact.

Market researcher Kantar Worldpanel said Tesco's sales rose 0.3 percent year-on-year over the 12 weeks to Feb. 1, outperforming its so called big four rivals, Asda, Sainsbury's and Morrisons, who saw declines of 1.7 percent, 1.0 percent and 0.4 percent respectively.

Shares in Tesco jumped on the news, up 2.5 percent to 239.25 pence at 0957 GMT.

Since joining the firm in September, Lewis has improved product availability and customer service and cut prices on fresh produce and branded goods in response to a fierce industry price war.

However, Tesco still recorded a decline in its overall market share. That fell 0.2 percentage points to 29.0 percent as discounters Aldi and Lidl continued to gain ground.

Britain's overall grocery market grew 1.1 percent over the 12 weeks, Kantar said, the fastest growth since June 2014, while like-for-like prices fell by 1.2 percent.

Tesco, Sainsbury's and Morrisons published Christmas trading updates last month, all coming in ahead of analysts' forecasts. Asda will update on its fourth quarter on Feb. 19.

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