Tesco reports biggest growth in Christmas sales for three years

Philip Clarke: chief executive of Tesco
Philip Clarke: chief executive of Tesco

Tesco has reported a 1.8% lift in sales in the six weeks to 5 January, marking its biggest growth in Christmas sales for three years.

It has also made two key appointments, including hiring a new managing director.

Tesco said its like-for-like sales growth of 1.8% was driven by a much stronger food performance compared with last year and further improvements from the third quarter.

The supermarket chain aired a number of ads over the Christmas period, created by its new advertising agency Wieden & Kennedy, which tapped into customers' desire for savings over the Christmas period.

Online sales were also an important driver in the period and at Tesco recorded its biggest weeks to date for internet sales, with Tesco Direct revenues up by more than 16%.

Philip Clarke, chief executive of Tesco, said: "The group performed broadly in line with our expectations through the Christmas period, with an improved performance in the UK and maintained trends elsewhere as we continue to experience tough trading conditions – particularly in Central Europe.

"I am pleased with our performance over the important Christmas and New Year period in the UK, which reflects the progress we are making in improving our offer for customers."

Within its food offering, Tesco said its own-label range, 'Finest', and value range  'Everyday Value', outperformed the business as a whole.

But the retailer added that its performance in merchandise – both in-store and online – was "still a drag on our overall rate of growth".  Sales of its clothing enjoyed a stronger performance, the company said.

Tesco has also announced  two key appointments, including the appointment of chief operating officer of its British business, Chris Bush, to the role of UK managing director.

The appointment of Bush means that Tesco chief executive, Philip Clarke, will be able to spend more time on strategic issues and concentrate on running the overall business.

It has also appointed House of Fraser multi-channel development director Robin Terrell as multi-channel director. Terrell will join Tesco in February, as the retailer aims to up its multi-channel offering.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers