Tesco set to report strong first-quarter figures as recovery continues
TESCO looks set to report like-for-like UK sales growth of 1.9 per cent in the first quarter as it continues its domestic recovery.
This is well above the 0.7 per cent seen in the previous quarter due to an improved inflationary environment and rising food sales momentum, according to analysts Jefferies.
Group sales are expected to rise 1.6 per cent, with sharper trading in Thailand offsetting declines in Poland.
Kantar Worldpanel’s latest figures showed Tesco’s sales rising, but market share dipping from 28.3 per cent to 27.8 per cent, as Aldi and Lidl continue their surge.
Tesco chief Dave Lewis calls for 'certainty' over Brexit
Laith Khalaf, senior analyst at Hargreaves Lansdown, said investors will be seeking reassurance amid fears that electoral uncertainty could hit consumer spending: “Tesco recently posted its first full year of positive like-for-like UK sales growth since 2009/10 and paid down almost £2billion of debt.
"However, the grocery sector is so competitive that raising prices because of the weak pound could see Tesco losing customers to cheaper rivals.”
He added the proposed takeover of Booker faces regulatory hurdles ahead of a shareholder vote: “CEO Dave Lewis will be seeking to convince investors about the merits of the deal.”