Tesco has released its Christmas trading results for the six weeks to 4 January 2014, with group sales down 0.6% inc. VAT exc. fuel (-1.1% at actual exchange rates).
Increasingly multichannel Christmas but UK challenges persist
In the UK sales over Christmas declined 0.6% (inc. VAT exc. fuel), with LFL sales slowing compared to the performance in Q3, down 2.4% (exc. VAT, exc. fuel). Tesco attributed the slow down in sales to a weaker grocery market, less new store openings to bolster sales, the ongoing work to transform its general merchandise and also a tough comparative, not just following a strong Christmas performance last year but also given the fact that Christmas experienced the lowest levels of inflation for the past three years.
Despite the difficulties, Tesco says that its ongoing investment in its UK operations delivered its ‘most compelling Christmas offer’, with over £1bn taken in the five days before Christmas. its biggest ever trading day and an improving sales trend through the period. Highlights include:
Continue reading Tesco has challenging Christmas period – IGD Retail Analysis.