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Clothing sales boost Tesco’s outlook ahead of F&F's digital relaunch

Chloe Burney
03 October 2024

Tesco has today published its interim results, which revealed consumers are in “reasonably good shape” as a surge in demand for clothing and home products helped lift its sales.

Despite food taking centre stage in the report, Tesco revealed insights into its Home and Clothing categories.

The UK’s biggest supermarket said shoppers were buying more items than they were last year. Total sales across the group grew by 4% to £31.5 billion over the 26 weeks to August 24, compared with the same period last year, incorporating both its food and home and clothing businesses.

F&F clothing is expecting to land back on the retailer’s website later this year after a six-year hiatus, hoping to project clothing sales even further. To stay ahead, and compete with peers such as M&S, Tesco will appeal to shoppers who prefer the convenience of e-tail.

Tesco reported an adjusted operating profit of £1.6 billion for the first half of the year, about 16% higher than this time last year.

It also credited an uptick in the number of purchases made using its Clubcard loyalty scheme, with more than 23 million households signed up across the UK.

Ken Murphy, Tesco’s Chief Executive, said: "While they are not doing cartwheels down the hallway, customers are in reasonably good shape."

Murphy added: "We’ve been working really hard to offer our customers the best possible value, quality, and service and they are shopping more at Tesco as a result.

"The combination of price, quality and innovation means we are as competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years. Our strong UK and ROI market share gains across the last year demonstrate our continued momentum.

"We are in good shape, with volume growth delivering strong financial performance. This builds on our track record of delivery for all our stakeholders. Our strong momentum allows us to continue to focus on value, quality, innovation, and the broader customer experience, whilst investing in growth opportunities in a disciplined, returns-focused way."

The Boss also said Tesco was seeing consumer sentiment improve ahead of the festive period and is expecting more people to "aim for a special and fun-filled Christmas" this year.

With volume growth ahead of its expectations this year, the group said it now expects to deliver an operating profit of £2.9 billion for 2024. It previously said earnings were likely to come in at at least £2.8 billion.


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