The Tesco PLC (LON: TSCO) share price edged 1.7% lower despite releasing an upbeat first quarter operations update and financial results for the thirteen weeks that ended 27 May 2023. The company’s first-quarter revenue was £14,834 million, marking an 8.2% improvement to last year’s figures.
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The retailer reported strong performance across all formats and channels, maintaining a substantial market share of 27.1%. At the same time, large store sales were robust, with LFL sales increasing by 9.9%.
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The company’s online sales were up 8.2%, with its online market share rising by 75bps to 37.5%. The retailer increased its Aldi Price Match to approximately 700 products with a substantial volume response to the latest Low Everyday Prices price-lock on over 1,000 products.
Tesco also made its Clubcard Prices available on over 8,000 lines while improving its price index. The retailer has led the market in cutting prices on essential items to support consumers. This was also the ninth consecutive period of switching gains from premium retailers,
The above period was supported by the solid performance of the finest products, with sales up 14.9% as the company launched over 100 new finest products. The retailer registered strong growth in the food division, where LFL sales rose 9.4%.
The company also successfully integrated Joyce's and five new stores contributing to a surge in its market share of up to 52bps YoY.
Ken Murphy, Tesco’s CEO, said: “We are pleased with our performance in the first quarter, underpinned by our relentless focus on value. Customers continue to recognise our leading combination of great value and quality in every part of their basket – from essentials covered by our Aldi Price Match to our growing Finest range.
We are conscious that many of our customers continue to face significant cost-of-living pressures, and we have led the way in cutting prices on essential everyday items. There are encouraging early signs that inflation is starting to ease across the market, and we will keep working tirelessly to ensure customers receive the best possible value at Tesco.”
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Tesco share price.
The Tesco share price fell 1.699% to trade at 260.25p, from Thursday’s closing price of 264.75p.
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