Embattled supermarket group Tesco has received a much needed boost ahead of its potentially rancorous annual meeting later today, with its reported first quarter sales significantly ahead of analyst expectations.
In a trading update published to the market this morning, the group reported a decline in like-for-like sales in the UK of 1.3 per cent for the three months to the end of May, an improvement on the decline of 1.7 per cent in the preceding period and well ahead of declines last year, which were in excess of five per cent. Consensus among analysts had been for a 2.5 per cent decline.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Analysts told the The Grocer that the results are likely to quell anger over Lewis's contract, but there is still likely to be unrest catalysed by shareholder action group Pirc over the payments to the departed executives. John Ibbotson of Retail Vision told the magazine: "By all means go after the golden goodbyes awarded to Clarke and McIlwee, but any investor complaints about Dave Lewis' golden hello are likely to fade after these numbers."
Tesco said the results were particularly pleasing as they came despite the headwinds of a deflationary environment and reduced coupon incentives. It added that figures show it has added 180,000 new customers over the past three months, with transaction volumes up 1.4 per cent.
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right nowSpeed Read Britain is currently in the grip of an ‘employment crisis’
-
Will the energy war hurt Europe more than Russia?Speed Read European Commission proposes a total ban on Russian oil
-
Will Elon Musk manage to take over Twitter?Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
-
Shoppers urged not to buy into dodgy Black Friday dealsSpeed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
-
Ryanair: readying for departure from LondonSpeed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
-
Out of fashion: Asos ‘curse’ has struck againSpeed Read Share price tumbles following the departure of CEO Nick Beighton
-
Universal Music’s blockbuster listing: don’t stop me now…Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
-
EasyJet/Wizz: battle for air supremacySpeed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
