British supermarket chain Tesco has reported that its retail sales grew by 3.4% to £15.30bn ($19.54bn) in the first quarter of fiscal 2024 to 2025 (Q1 FY24/25).
In the UK and Republic of Ireland (ROI), the retailer’s sales for the quarter rose by 3.6% to £14.33bn.
Sales grew 4.6% in the UK to £11.36bn over the quarter, with market share growing ahead of all key competitors, up 52 basis points (bps) to 27.6%.
Tesco’s food sales also increased by 5.0% in Q1 FY24/24, driven by strong volume growth across the quarter, particularly in fresh food.
Driven by strong performance in clothing, the retailer’s non-food sales also rose by 0.7%.
During the 13 weeks ended 25 May 2024, online sales in the UK also grew by 8.9%, with strong volume growth and contribution from the company’s same-day home delivery platform, Whoosh.
In the ROI, Tesco delivered continued growth in market share, which increased by 59bps.
The business posted 5.1% growth in food sales, driven by strong performance in fresh volumes.
In Central Europe, Tesco's sales grew by 0.6% to £975m.
Tesco chief executive Ken Murphy said: “We’ve continued to build momentum in the business, with strong volume growth across the UK, the Republic of Ireland and Central Europe supported by easing inflation.
“We continue to be the cheapest full-line grocer and are the most competitive we’ve ever been, with our value, product quality and service driving better brand perception and customer satisfaction.
“Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets.”
For the full year 2024 to 2025, Tesco expects a retail adjusted operating profit of at least £2.8bn.
A report by Reuters has revealed that the company’s board will be asked to explain Ken Murphy's £10m pay package during its next annual meeting.
As revealed in the company’s annual report published in May, Ken Murphy’s pay increased from £4.44m in 2022/2023 to £9.93m in the year to 24 February 2024.
In March 2024, Tesco announced a 9.1% pay increase for its store workers, raising their hourly rate from £11.02 ($13.98) to £12.02.
