Tesco posted a 6.7 per cent profit before tax increase in the first half of 2019, as departing chief executive Dave Lewis announced further store openings.
Fresh food was singled out for driving UK sales volume by 0.4 per cent, with Tesco group revenue remaining the same as last year, at £28.3 billion.
The company said its new seasonal fresh five scheme to promote fruit and veg had driven sales of fresh produce by two per cent. Tesco also plan to open three more stores of their discount brand Jack’s by February 2020.
Tesco wholesale subsidiary Booker also revealed it was purchasing logistics company Best Food Logistics, which will add a further £1.1bn of foodservice sales.
Tesco chief executive Dave Lewis, who announced his shock departure yesterday after five years at the helm, said “every element” of his turnaround plan had been achieved.
“Despite challenging external conditions we have delivered a very good start to the year. I’m very pleased to say that we have now delivered every element of the turnaround plan and from this position of strength, the transformation of our business continues at pace.
“With the turnaround complete and as we begin to implement the next steps of our sustainable growth strategy, now is the right time to plan a smooth and orderly succession. As such, I will step down as Group CEO next summer and pass the baton to Ken Murphy.”
Britain’s largest retailer also plans to double its online capacity in the UK, as well as open 150 new Express stores in the next three years, as well as four more superstores.
Having struggled in Asia previously, Tesco also plans to open 750 new stories in Thailand after 8.4 per cent sales growth in the region.
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