23rd Jun 2016 06:26
LONDON (Alliance News) - Tesco PLC on Thursday reported growth in like-for-like sales in the first quarter of its financial year, marking its second consecutive quarter of like-for-like growth, and announced that it is selling its Harris + Hoole coffee shop business.
The FTSE 100-listed supermarket chain said like-for-like sales in the 13 weeks ended May 28 grew by 0.9% year-on-year, with 0.3% growth in the UK and and 3.0% in the international business.
Tesco said volume grew by 2.2% in the UK and by 2.7% internationally, while transactions rose by 1.7% in the UK and by 1.5% internationally. The launch of new food brands performed well in the UK, Tesco said, but price deflation did hit UK like-for-like sales by 0.7%.
The retailer also announced that it has agreed the sale of its Harris + Hoole coffee shop business, but did not provide any more details on the sale. This comes after its recent sales of the Giraffe restaurant chain and Dobbies Garden Centres business in the last couple of weeks.
"We are encouraged by the progress we are making. By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way. I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders," Chief Executive Dave Lewis said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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