Tesco has reported a 9% rise in UK sales to £10.8bn in the 13 weeks to 27 May, as CEO Ken Murphy confirmed the grocer had seen “encouraging early signs” of easing inflation.
He explained that Tesco “will keep working tirelessly to ensure customers receive the best possible value”, as the supermarket experienced a “strong volume response” to its latest Low Everyday Prices price lock on over 1,000 products.
Group retail sales also saw a rise of 8.2% to £14.8bn due to Tesco’s “relentless focus on value”.
Murphy said that customers recognise its “leading combination of great value and quality in every part of their basket”, following its increased Aldi Price Match offer which now includes around 700 products.
Tesco’s Clubcard Prices have also been extended to over 8,000 lines.
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The leading retailer said that its “strong” quarterly performance showed that it had “led the market in cutting prices on essential items to support customers”.
Last month, Tesco unveiled price cuts across 30 own-brand pasta and cooking oil products, following previous cuts to the cost of bread, butter and milk.
Tesco has managed to maintain its position as the UK’s leading supermarket with a 27.1% grocery market share. Despite the sales growth, the retailer said it expects to deliver a broadly flat adjusted operating profit in the year 2023/24.
“We are very conscious that many of our customers continue to face significant cost-of-living pressures and we have led the way in cutting prices on everyday essential items,” Murphy said.
“By focusing on our customers we have delivered a strong start to the year. We are well-positioned for the months ahead and are reiterating our guidance for the full year.”
