Tesco sees report Christmas gross sales as customers ‘deal with themselves’

A shopper outside Tesco
A consumer outdoors Tesco

Tesco noticed “report” gross sales over Christmas as clients spoiled themselves in lockdown with on-line orders of deluxe vary merchandise.

UK like-for-like gross sales have been up 8.1% within the six weeks to 9 January because the grocery store noticed a 14% leap in demand for items in its Tesco Most interesting vary.

Gross sales of vegan Christmas options additionally surged, it added.

Large grocers have benefited at a time when non-essential retailers and eating places are closed because of Covid.

Tesco mentioned clients had “appeared for extra alternatives to deal with themselves” because the UK confronted strict restrictions over Christmas.

New boss Ken Murphy mentioned: “We delivered a report Christmas throughout all of our codecs and channels.

“In response to unprecedented demand for on-line groceries, colleagues delivered over seven million orders containing greater than 400 million particular person gadgets over the Christmas interval.”

Like different grocers, Tesco has seen sturdy on-line gross sales progress as folks attempt to keep away from purchasing in bodily shops the place they will.

It mentioned its on-line gross sales have been up 80% within the 19 weeks to 9 January, equating to almost £1bn in further gross sales.

Slicing down on plastic

The retailer mentioned it provided its largest ever festive vary of free-from, vegan and vegetarian merchandise this yr, with gross sales of plant-based merchandise growing strongly.

It additionally hit a goal of eradicating one billion items of plastic from merchandise offered within the UK, together with shrink wrap from multipacks, covers from greeting playing cards and plastic presents from Christmas crackers.

Supermarkets have loved bumper gross sales through the pandemic as folks attempt to make up for not having the ability to exit and spend extra on their weekly store.

However they’ve face criticism too.

Final month, Tesco mentioned it might repay £585m of enterprise charges aid after it was criticised for paying dividends to shareholders through the disaster. Most large grocers adopted go well with.

Tesco was later criticised for retaining its retailers open on Boxing Day regardless of union calls to offer employees the time off.

In its outcomes the grocery store mentioned it had given all frontline employees a 10% bonus over Christmas. It additionally mentioned it had shielded susceptible employees and brought on almost 35,000 further non permanent employees for the season.

“Our colleagues went above and past, rising to each problem in probably the most distinctive of circumstances and I thank each certainly one of them for this,” mentioned Mr Murphy.

In different retail information:

  • Primark proprietor Related British Meals has warned that the style chain may lose greater than £1bn-worth of gross sales if the present retailer closures beneath lockdown proceed till the top of February. In the intervening time, 305 of its 389 international shops are closed – together with all 190 of its UK shops – representing 76% of its retail promoting house.

  • Halfords mentioned it had seen its “finest ever Christmas week” throughout festive buying and selling. Gross sales of bikes, e-bikes and e-scooters did effectively specifically, with a 35.4% uplift in like-for-like gross sales seen within the 13 weeks to 1 January from a yr in the past. Though motoring gross sales fell on account of lockdowns, gross sales throughout the group have been up 11.5%. The chain has been allowed to remain open throughout lockdowns as it’s categorized as an important retailer.

  • On-line vogue retailer Boohoo mentioned it noticed “sturdy” gross sales progress of 40% within the final 4 months of 2020, with revenues hitting £660.8m over the interval. The corporate has additionally raised its income progress forecast for the yr to 28 February to 36-38%, up from its earlier steering of 28-32%.

Leave a Reply