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Tesco non-food delivers "strong performance"

Published: 6 October 2009
Supermarket giant's group sales grow 8.3% in first half, boosted by an 8% increase in non-food sales.
Tesco non-food delivers 'strong performance'
Tesco's trading statement for the 26 weeks to August 29 revealed an 8% growth in its group non-food sales to £6.2bn - £4.3bn in the UK and £1.9bn internationally.

The grocer explained: "Our non-food business has been very resilient through the downturn and we are confident it will emerge from the recession even stronger as some competitors have felt the strain and more customers will have been encouraged to try our non-food range in the search for great value."

Tesco delivered a strong non-food performance in the UK with like-for-like sales growth in the second quarter and total growth of 4.9% in the 26-week period. Its international non-food performance, which includes Homever and Homeplus in Korea, grew 16%.

The interim statement added: "A number of hardlines categories had double-digit like-for-like growth including electricals... Home categories, which had been particularly hard hit with the slowdown in the housing market, are now growing."

Tesco Direct, which the company admits, "extends the reach" of its non-food offer, saw a 29% sales growth in the first half and is "continuing on its path towards profitability".

Total UK sales for the supermarket chain were up 2.8% to £20,651m, with a trading profit increase of 7.4% to £1,155m. Its gross margin improved slightly to reach 6%.

Comments

Published prior to March 2014
By TESCO NON FOOD
The never ending growth of supermarkets into non food, can only be bad news for the Independents as far as I can see.. and maybe for the consumer at the end of the day. The headline grabbing Tesco creates 200 new jobs, does not reflect the fact 300 jobs are lost as other shops close.. If the supermarkets take the bread and butter sales day to day sales from small electircals, Housewares, DIY, then the local shp with the big choice will close in the end. So choice will vanish.. and yes annother Charity shop will open !

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