UK-based retail giant Tesco has revealed strong results for the first quarter of the year, with overall group sales excluding petrol increasing by 12.6 per cent for the thirteen weeks to 30 May 2009.
Year-on-year sales growth was achieved in all areas of Tesco's retail operations, with its core UK business delivering 'solid, stable growth' of 4.3 per cent on a like-for-like basis.
International sales for the period increased by 20.1 per cent at actual exchange rates, with European growth of 1.9 per cent despite recessionary conditions in a number of markets.
The main boost to international sales came in Asia, which produced an 'encouraging' sales increase of 43.8 per cent according to the group, boosted by exchange rates and the performance of the converted Homever stores in Korea.
The group also reported that its US Fresh & Easy Neighbourhood network had seen sales jump 174 per cent through the first quarter of the year, with customer number 'growing strongly'.
'We've made a solid start to the financial year, maintaining good momentum in a challenging economic climate – by investing in our offer for customers and adjusting our businesses well locally to meet their changing needs,' said group chief executive Terry Leahy. 'We are also keeping a strong focus through the downturn on our long-term strategic objectives and I am encouraged by the impetus last year's acquisitions – of Tesco Personal Finance and Homever in Korea – are now giving the group.'
The group added in the financial report that it is currently performing in line with expectations, and that the outlook for the year remains unchanged.
In April, Tesco revealed that it had defied the economic downturn with an underlying profit before tax increase of 10 per cent to a record £3.1bn(€3.5bn) and group sales of £59.4bn (€67bn) for the year 2007/08.
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