Tesco sales expected to rise 6%
Tesco is tipped to say that first quarter sales in its UK supermarkets and convenience stores grew by up to 6 per cent, when it updates the market on Friday.
Tesco is tipped to say that first quarter sales in its UK supermarkets and convenience stores grew by up to six percent, when it updates the market on Friday.
Despite the intense competition of consumer spending, which has seen supermarkets slash their prices, analysts expect Tesco to say that it is continuing to grow its sales and gain market share in the UK.
In Ireland, its sales growth is expected to come in at 2.5 percent to 3.5 percent. Additionally, analysts at broker Shore Capital expect Tesco to report that its wholesale arm Booker rose 3-4 percent.
Shore head of research Clive Black said that Tesco chief executive Ken Murphy is likely to say the retailer’s sales have been helped by falling inflation and low prices: “Tesco’s trading statement is expected to feature the reality of a competitive UK grocery market where disinflation is evident, albeit we anticipate some compensating volume growth as price pressure on units eases.”
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said that one area the market is likely to scrutinise its Tesco’s clothing and homeware sales: “Analysts would like some more details on demand expectations in the medium-term.”
Last week Booker acquired specialist wines and spirits merchant Venus to boost its premium alcohol range. Venus supplies venues from its warehouses in London, Leeds and Bristol and employs 140. Black said the acquisition shows Tesco “has growth aspirations in a controlled and selective manner”.
