Tesco sees rise in F&F customers

Tesco has released its financial results for the first half ending 27 August 2022, revealing an 8% increase in the number of customers purchasing F&F clothing.

However, overall non-food sales declined by 6%, following a higher full price sales mix linked to the lockdown in the first quarter last year.

Tesco's group sales increased by 3.1% to £28.1 billion, compared to £27.3 billion in H1 2021.

Adjusted operating profit was down 9.8% to £1.3 billion, compared to £1.4 billion. This reflected the impact of post-pandemic normalisation on food volumes and lower non-food sales, following high demand in the first quarter last year.

The group also reported net debt of £10 billion, compared to net debt of £10.2 billion the year before.

Looking ahead, Tesco expects full year adjusted operating profit between £2.4 billion and £2.5 billion.

Ken Murphy, CEO of Tesco, said: "By staying laser-focused on value and sticking to our strategy of inflating a little bit less and a little bit later, our price position has got even more competitive. Customers are seeking out the quality and value of our own brand ranges as they work to make their money go further, whether they are switching from branded products, between categories or cutting back on eating out.

"As we look to the second half, cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market. Despite these uncertainties, our priorities are clear. We have the right long-term strategy and we will continue to balance the needs of all of our stakeholders. Most importantly, we will stay focused on delivering value for our customers and supporting them in every way we can.”