UK retailer turns fortunes around with second stretch of consecutive growth
Tesco has registered its second quarter of positive like-for-like sales, with its Chief Executive Dave Lewis stating that the company is “encouraged” by the progress it is making.
In Q2 2016/17, Tesco saw sales inch up 0.9%; UK sales grew 0.3% and international sales spiked 3%. The retailer put this in part down to a more intense focus on its core business. The retailer recently sold off its Kipa Turkey, Giraffe, Dobbies and Harris + Hoole businesses in an effort to streamline operations and return to profitability.
Lewis said: "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."
Tesco's product offering has also been a key part of its recovery strategy. The retailer recently unveiled its fresh food brands, which have been performing "very well" in the UK. Lewis confirmed that over two-thirds of Tesco's customers have bought products from the new range in the past quarter.
Tesco continues to offer an extensive beauty and personal care selection of products, with brands including: Garnier, Shiseido, Dermalogica, Guinot, Max Factor, Revlon and Stargazer.