Food and Beverage Business
Consumer

Tesco’s Convenience Store Sales Experience Incremental Growth Compared to Larger Stores

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In a positive update, leading supermarket chain Tesco has announced that food price inflation is gradually slowing down. The company reported a 5.9% increase in like-for-like sales for the first quarter of 2023 in its convenience stores, which was slightly lower compared to the 9.9% rise in its larger stores and the 8.2% surge in online sales.

Overall, Tesco’s total UK sales for the first quarter reached £10.8bn, with its subsidiary Booker experiencing a significant 6.3% boost in retail sales. Tesco’s Chief Executive, Ken Murphy, expressed his satisfaction with the first-quarter results and acknowledged the financial constraints many customers are facing. He highlighted Tesco’s commitment to providing the best value by continuously reducing prices on everyday essential items.

Murphy mentioned that there are encouraging signs of inflation starting to alleviate throughout the market and assured customers that Tesco would persistently work to ensure they receive optimal value. While industry analysts commended Tesco’s announcement, they cautioned that while inflation may be slowing, prices are still increasing.

Julie Palmer, a partner at Begbies Traynor, emphasized that the easing of inflation does not imply a decline in prices. Instead, it signifies a slower rate of price growth, which has contributed to Tesco’s substantial 9% increase in UK sales. Palmer noted that it comes as no surprise that Tesco’s CEO views the direction of inflation as “encouraging”.

Overall, Tesco’s positive first-quarter results, coupled with the easing of inflation, bode well for the company and provide some relief to customers. It is important to acknowledge, however, that prices are still on the rise albeit at a slower pace.

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