Tesco PLC (LSE:TSCO) said there are “encouraging early signs” that inflation is starting to ease as it reported an 8.2% rise in group like-for-like sales in the first quarter, led by a strong showing in the UK.
In the 13 weeks to 27 May 2023, the Britain’s largest retailer said like-for-like sales rose 9% in the UK with a strong performance across all formats and channels.
Large stores sales were particularly strong, up 9.9%, while online sales rose 8.2%, boosting online market share to 37.5%.
Chief executive Ken Murphy said: “We are well-positioned for the months ahead and are reiterating our guidance for the full year.”
“We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023/24 and retail free cash flow within our target range of £1.4bn to £1.8bn,” the firm said in a statement.
Group sales totalled £15.17bn in the period, with UK sales at £10.80bn and Booker sales at £2.28bn.
Like-for-like sales in the Republic of Ireland rose 7.3% and Booker sales advanced 8.4% while Central Europe sales edged up by 1.1% with volumes impacted by ongoing cost-of-living pressures, particularly on discretionary non-food items.
Tesco Bank sales rose 13.9%, reflecting new customers in both lending and insurance and higher credit card spending.