Tesco has today (5 October) reported mixed first-half results, with a drop in UK like-for-like sales but international growth boosting profits.

The retailer said its UK like-for-like sales, excluding fuel and VAT, dipped 0.5% in the six months to 27 August. Sales were down 0.9% in the second quarter.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Chief executive Philip Clarke pointed to “subdued demand in the UK, particularly in non-food categories”. However, he said Tesco was making “substantial changes” to its UK business to “sharpen execution and competitiveness for customers”.

Two weeks ago, Tesco unveiled a revamp of its promotional strategy in the UK that it claimed would lead to price cuts worth GBP500m.

Tesco has operations in 11 markets outside the UK, excluding Japan, where it plans to sell its stores. Its group sales, including VAT, increased 8.8% to GBP35.5bn. At constant exchange rates, sales were up 8.2% including petrol and by 6.7% without fuel sales.

Tesco’s international sales rose 2.7% thanks to growth in Asia, Europe and the US. Sales in Asia were up 11.8%, increased 7.8% in Europe and jumped 32% in the US. Like-for-like sales increased in all regions.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The retailer said its net profit rose 16.3% to GBP1.38bn, while its operating profit climbed 5.9% to GBP1.94bn.

Trading profit from Tesco’s operations in Asia and in Europe increase and losses from its Fresh & Easy business in the US narrowed.

Clarke acknowledged the “challenges” in the UK but said “excellent growth in Europe and Asia, as well as an encouraging peformance in the United States” had “supported further growth in the first half”.