On October 3rd 2018, Tesco published their second quarter results from the financial year. Group sales were up 12.8% of £28.3Bn and profits up 47.6%.
Tesco are continuing to refine the range of general merchandise, focusing on sustainable categories that complement the grocery shop and deliver a simpler, more profitable business. As a result, Tesco have reduced the number of products by a further 15% since the start of the year.
Dave Lewis, Chief Executive of Tesco:
“We have made a good start to the year. The step up in Q2 is driven mainly by the UK. At the same time, we have made further strategic progress. We completed our merger with Booker in March and are delighted with performance so far. We announced a strategic alliance with Carrefour in July which goes live this month. And we are now more than half-way through the biggest own brand re-launch in our nearly 100-year history, including a significant investment in over 300 new ‘Exclusively at Tesco’ products at market-leading prices. We are firmly on track to deliver our medium-term ambitions and are continuing to improve the quality and value of our offer for customers in all of our markets.”
Creating value for Tesco key stakeholders
For customers,
- Have an increasing positive brand perception and relaunching different brands which will be exclusive to Tesco
- Tesco has launched ‘Jack’s’, a new brand and store format
For supplier partners,
- Retailer with most improved supplier relationships for third successive year in June 2018 GCA survey
- Suppliers now accessing faster UK sales growth; joint Tesco Booker terms agreed with top 60 suppliers
- Established tenth Sustainable Farming Group, with 1,600 beef farmers in the UK now benefiting from 12 month contracts that guarantee above-market prices
- Worked alongside 358 of existing suppliers to create new ‘Jack’s’ brand with 1,800 products
Full financial results can be found here