Tesco announced the relaunch of its clothing arm, F&F, online last month to meet “the growing demand from customers and make it even easier and more convenient to shop F&F,” it said.
Aliyah Siddika, Retail Analyst at GlobalData, noted the Q1 results showed Tesco “is off to a strong start this year, solidifying its position as market leader and capturing more share by enhancing value credentials, improving non-food categories, and boosting its premium offer.”
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The grocer reported 5.3% growth in group sales for the 13 weeks ending 24 May, fuelled by a robust 5.7% rise in UK sales. Notably, online sales have surged by 11.5% in the UK as the grocer capitalises on growth in the online food market and continues to improve its online proposition, for example, through the recent relaunch of F&F clothing online.
“Given this impressive performance, Tesco’s profit guidance remains unchanged, with expectations set between £2.7bn and £3.0bn. However, if Q1 momentum is maintained, it would be no surprise to see an upward revision later in the year.
“In addition to its food success, Tesco’s non-food division has also performed well in the UK, with sales increasing by 6.2% (excluding toys). Although this increase is against a weak comparative backdrop, it highlights the success of Tesco’s F&F home launch at the end of 2024 and the return of F&F clothing online in May. These initiatives were strategically timed, as the online clothing market is projected to surpass offline sales this year. Both the clothing and home product ranges feature trendy items designed to appeal to a diverse customer base, offering everything from athleisure targeted at younger consumers to children’s school uniforms.”
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