UK: Tesco says clothing "outperforms" during Q3
- Sales increased 2.4% during the third quarter
- UK sales were up 1.7%
- UK like-for-like sales dipped 0.6%
UK supermarket retailer Tesco said its clothing division has continued to "outperform the market" as the company recorded a 2.4% increase in sales over the third quarter.
The UK's largest supermarket operator said that while like-for-like sales were down in general merchandise, clothing recorded another quarter of positive growth.
The company attributed the decline in general merchandise to a weakness in consumer demand seen across the market as a whole. It is working to turn around the division by allocating less space to categories like consumer electronics and home entertainment, and focusing further on clothing, nursery and home which are delivering better top and bottom line growth.
"Clothing - which has already received some of this extra focus - has continued to outperform the market, with another quarter of positive like-for-like sales growth," the company said.
"This is particularly evident in women's wear, essentials and footwear, which are all benefiting from range improvements in F&F, together with improved merchandising."
Over the quarter ended 24 November, the company said UK sales grew by 1.7%, while like-for-like sales fell 0.6%.
"Our general merchandise performance overall in the UK was not good enough, and we are renewing our efforts to deliver sustainable, profitable growth in this part of the business," said chief executive Philip Clarke.
"We have seen a further weakening in consumer spending in Central Europe, although the effects of this have been partly offset by a better quarter in Asia.
"I am looking forward to the important seasonal period ahead, and am confident in our plans to deliver further improvements in our shopping trip for customers."
Yesterday (13 May) was a big day for the Bangladesh garment industry, with retailers finally signing an agreement to improve fire safety in the country's ready-made garment industry after two years of...
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 ...
The most-read stories on just-style this week include a rush by apparel brands and retailers to sign the new Accord on Fire and Building Safety in Bangladesh, a report on what the agreement entails, a...
A group of North American retailers has gone its own way on strengthening safety efforts at Bangladesh garment factories, setting up a new initiative said to offer a long-term solution that also offer...
More retailers and brands have joined the Accord on Fire and Building Safety in Bangladesh ahead of the midnight deadline (15 May). ...
- TPP: now the real fight starts
- Why TPP implementation is far from a done deal
- Private label sourcing faces range of pressures
- Cambodia leads US apparel import growth in August
- Can Gap maintain its momentum minus Larsson?
- Update: Negotiators agree landmark TPP trade deal
- Nike debuts new fabric for adaptive breathability
- New Bangladesh labour rules draw union criticism
- Cambodia sets new minimum wage at US$140
- Vietnam releases new textile dye regulations
- Wearable technology: The future market potential for smart garments and e-textiles
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of lingerie - forecasts to 2020