The pace of Tesco’s (LON:TSCO) decline slowed in the first quarter of the new financial year.
Like-for-like sales in the thirteen weeks to May 30 reduced by 1.3%, which compares favourably to the corresponding period of last year when sales were down 4%.
Tesco said that the number of customer transactions increased, by 1.3%, and said that it had 180,000 more customers during the period.
Claiming success chief executive Dave Lewis said the supermarket’s new strategy, which is less dependent on short-term couponing, is starting to have an effect.
“Whilst the market is still challenging and volatility is likely to remain a feature of short-term performance, these first quarter results represent another step in the right direction," he said.
Tesco’s management will face investors, many of which may well be disgruntled, when it holds its annual general meeting (AGM) later today.
Lewis’s bumper pay deal is in the spotlight, and key shareholders will reportedly oppose the proposed the boss’s bonus.
“Considering the time that the new CEO has been in the job, the speculation surrounding the size of his bonus has unsurprisingly been overridingly negative,” IG Markets analyst Alastair McGaig said in a note this week.
“Mr. Lewis should prepare himself for a rough ride on Friday as the honeymoon period for the new head of Tesco looks to have already come to an end.”
It is also anticipated that the proposed appointment of John Allan, as chairman, may also see opposition.