Dave Lewis Tesco

Dave Lewis: 'Encouraged' by progress

Tesco’s like-for-like sales grew by 0.3 per cent during the first quarter of the 2016/17 financial year as the retailer hailed its ongoing “positive momentum”.

International like-for-like sales up were up three per cent during the same period, with volume growth in produce and meat outperforming the market by around five per cent.

The UK’s largest retailer said its new discount brands on fresh are performing “very well”, and said there has been a strong initial customer response.

It has placed a greater focus on the core business following sales of various subsidiaries, including Kipa in Turkey, Giraffe, Dobbies and Harris+Hoole.

Chief executive Dave Lewis said Tesco has delivered a second quarter of positive like-for-like sales growth across all parts of the business. “Our new fresh food brands are performing very well, with over two-thirds of our customers having bought products from the new range,” he said.

“We are encouraged by the progress we are making. By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way.

“I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders.”