Tesco PLC Third Quarter and Christmas Trading Statement

Tesco PLC Third Quarter and Christmas Trading Statement

Tesco PLC Third Quarter and Christmas Trading Statement 2017/18

Tesco PLC’s Third Quarter and Christmas Trading Statement 2017/18 was announced today at 7.00am. To view the full announcement, please go to: www.tescoplc.com/3Q2017

FRESH FOOD DRIVES STRONG THIRD QUARTER & RECORD CHRISTMAS AT TESCO

Headlines (19 weeks ended 6 January 2018)

● Strong third quarter performance in the UK and ROI, with like-for-like sales up 2.3%

○ Continued UK market outperformance in like-for-like sales and volumes, particularly in fresh food

○ Highest rate of market share growth in the Republic of Ireland for five years

● Momentum continued into record Christmas in the UK and ROI

○ UK LFL sales growth of 1.9% driven by +3.4% LFL in food (including +3.7% LFL in fresh food) offset by ongoing drag from general merchandise and lost tobacco sales due to Palmer & Harvey integration

○ Biggest ever sales week in the UK, driven by fresh food market outperformance of nearly 4%

○ 58 million customer transactions and 770,000 online grocery deliveries in key Christmas week

● Positive Central Europe like-for-like sales growth across 19-week period reflects ongoing improvements in our customer offer, particularly in fresh food

● Asia like-for-like sales performance reflects ongoing impact of ceasing unprofitable bulk selling activities in Thailand and a further, planned reduction in promotional activity in recent weeks

Dave Lewis, Chief Executive:

“We have continued to outperform the market throughout this period, particularly in fresh food, thanks to our most competitive offer for many years. Our trading momentum accelerated across the third quarter and into December, with the four weeks leading up to Christmas Day delivering record sales and volumes in the UK.

Incorporating Palmer & Harvey volumes and complexity during this peak period was challenging, resulting in lost tobacco sales across December and putting further strain into our distribution network, particularly post-Christmas. Whilst I am pleased to say these challenges have now been resolved, they took the shine off an otherwise outstanding performance for the period as a whole.

Our colleagues and supplier partners have done a fantastic job serving our customers better every day throughout this exceptionally busy time, and I want to thank them for everything they have done.

We are confident in the outlook for the full year and are firmly on track to deliver our medium-term ambitions.”

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