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Non-food gains for Tesco

Published: 15 April 2008
'Robust' performance helped by Direct catalogue.
Tesco has reported sales growth in the UK for non-food goods at 9% for 52 weeks ended February 23, 2008 to £8.3bn.

Although growing less rapidly than in previous years, Tesco described the performance as 'robust' and said it grew faster than its core business, helped by a successful first full season for Tesco Direct.

The retailer said it saw particularly pleasing growth in hardlines, whilst other strong categories include DIY, furniture and books as well as its strength in entertainment, health and beauty, and consumer electronics.

Tesco described its Direct catalogue as 'established and thriving' as its third book now carries 11,000 products on-line and 7,000 in the catalogue.

"Customer response has been very positive with order volumes rising season by season. We have desks in 200 stores with plans to add a further 80 by the end of the year, which will mean that most areas of the country will be served," it said in a statement.

Tesco added: "Sales are growing well, and last year, we comfortably exceeded our plan to generate turnover in excess of £150m – delivering sales of almost £180m."

Tesco said it will extend the trial of its Homeplus general merchandise-only stores to a further ten large sites, including a new store at Cribbs Causeway, Bristol, which will open this summer, selling some Tesco Direct products from stock.

It re-iterated previous comments about Dobbies saying it will become a platform for the group to encourage green consumption.

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