Tesco enjoys best Christmas for three years
Tesco enjoys best Christmas for three years
Tuesday 12th January 2010
Supermarket giant Tesco revealed its performance over Christmas was the strongest in three years.Total UK sales for the six weeks up to January 9th rose by 8.3 per cent compared to the same period the previous year.
Excluding petrol and VAT the figure stood at 4.9 per cent, the supermarket announced on Tuesday.
Tesco said the impressive performance was based on volume growth instead of the result of price increases.
The company said its loyalty Clubcard scheme also contributed to 0.7 per cent of sales growth after offering double points for users.
Tesco shares rose in response to the strong trading data, leaping 2.15 per cent to 426.85p in early trading.
Despite exceeding analysts' predictions for the Christmas period, the supermarket chain expressed concern about the outlook for 2010.
Tesco's finance director Laurie McIlwee said in a conference call: "Unemployment is still high and of course we've still got all the concerns about how a large government debt is going to be paid off."
Elsewhere, the British Retail Consortium announced retailers in the UK enjoyed their strongest December growth for years.
The figures show UK retail sales values rose 4.2 per cent on a like-for-like basis from December 2008.
On a total basis, sales rose six per cent against a 1.4 per cent decline in December 2008.
Commenting, Stephen Robertson, the group's director general, said: "These are stronger figures than we dared hope for. After a surprisingly muted November, this is the best total sales growth for a December since 2005 and goes well beyond just making up for the sales fall the sector suffered a year ago.
"The figures were certainly helped by the comparison with last December's terrible results but customers clearly felt more confident about spending than they have for some time. Sales growth was also helped by the VAT cut dropping out of the 12-month comparison, December being the first and only month where the 15 per cent rate is the same as a year earlier.
"Snow kept people away from the shops for a time but they made up for that in the days just before Christmas and as sales events began immediately afterwards. But, with customers now reacquainting themselves with concerns about jobs and tax rises there is a risk that a healthy December may be only a temporary respite on the painful road to recovery."
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