Tesco hails ‘early signs’ of easing inflation in Q1 trading report

Supermarket giant Tesco is celebrating the “encouraging early signs” of easing inflation in its Q1 trading report for 2023/24, in which it reported a UK and ROI like-for-like sales increase of 8.8 percent, hitting 13,790 million pounds.

In Central Europe the retailer also saw an increase of 1.1 percent, taking its sales in the region to 1,044 million pounds.

While online sales were up 8.2 percent, its large store sales were particularly strong, with a LFL growth of 9.9 percent.

The company did not disclose the specific sales for its clothing brand F&F, however it did note that its growth rate reflected an impact of sustained high inflation on consumer spending, particularly seen on non-food items in Central Europe.

Despite this, Tesco’s chief executive, Ken Murphy, was upbeat in his statement, noting that the company was pleased with its performance in Q1.

Murphy continued: “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.

“There are encouraging early signs that inflation is starting to ease across the market and we will keep working tirelessly to ensure customers receive the best possible value at Tesco.

“The ongoing effort and contribution from our colleagues is evident in the strength of our offer and I want to thank the entire team for everything they do.

“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.”