UK: Tesco online clothing sales soar, UK sales slide
Tesco's UK decline was driven primarily by a weaker grocery market
Tesco saw online clothing sales soar over the Christmas period, but a decline in UK like-for-like sales pushed shares down this morning (9 January).
Further weakness in the UK grocery market contributed to a 2.4% drop in UK like-for-like sales for the retail giant in the six weeks ended 4 January. Total domestic sales were down 1.5%.
The decline was driven primarily by a weaker grocery market, and also reflect the impact of a tougher comparative, Tesco said.
"Our decision to significantly reduce our new store opening programme and our ongoing work to transform our general merchandise offer are also holding back top-line performance in the short term, particularly relative to others in the sector," the retailer said.
Group sales in the six week period slid 1.2%. Tesco said it had seen an improved performance in Europe with a better like-for-like sales performance than its previous quarter across every market. Total sales for Europe dropped 0.8%.
Tesco's shares were down 3.8% at 08:54 this morning to 316.25 pence.
Nonetheless, Tesco said it has recorded online clothing sales growth of over 70%, with more customers experiencing its next generation clothing departments in-store, which have now rolled out to around 100 stores.
Recent political disruption in Thailand, however, weighed on the grocer's Asia performance where sales fell 0.6%, with a "slightly weaker" like-for-like sales performance than the third quarter.
International sales were also down, by 0.7%, mainly impacted by foreign exchange rates.
Tesco said it expects to report a full-year group trading profit within the range of current market expectations, which it said ranged between GBP3.16bn (US$5.2bn) and GBP3.41bn.
Tesco PLC (TSCO) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by GlobalData...
More than 200 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
Apparel products sold by Tesco are expected to benefit from strengthening of the private label F&F and the expanding space dedicated to apparel in hypermarkets. The Cherokee brand is no longer present...
Sales of grocery products through internet retailing and the online presence of Hungary’s grocery retailers remained limited for much of the review period, with G’Roby the only significant grocery ret...
Online Retail in Europe industry profile provides top-line qualitative and quantitative summary information including: market size (value 2008-12, and forecast to 2017). The profile also contains desc...
- Myanmar - right time, right place, new challenges
- 3D printing gears up for fashion industry change
- Apparel working conditions linked to profit
- Cutting pollution saves China textile mills money
- Adidas worker hotline bridges communication gap
- Cambodia growth to slow on competition and cost
- China cotton imports to rise as Xinjiang cuts crop
- Crystal first China licensee of RevoLaze tech
- Thailand project to vertically integrate clothing
- Adidas launches "lightest ever" football boot