Tesco reports growth in convenience

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Booker Retail Partners – including Budgens, Londis and Premier – saw sales grow by 23.5% in the 13 weeks to May, Tesco has reported.

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The supermarket giant said One Stop and UK Tesco Express saw sales grow by 9.9% in the first quarter. More than 50 One Stop stores have converted to Tesco Express in the period, a 42% average increase, the supermarket reported.

In addition, its Jack’s stores have seen a 62% increase in like-for-like sales, running at more than £100,000 of sales each week.

Tesco’s online operation saw a 48.5% increase in sales in the 13-week period, including a 90%  increase in May. The supermarket increased its online capacity from 600,000 slots per week to 1.3m slots per week.

Overall group sales had risen 8% to £13.4bn in the period, but warned coronavirus-related costs were set to hit £840m in the year. It said shopping frequency was down by 32%, while basket size was up by 64%. Tesco added that it is now extending its Aldi Price Match to around 500 lines.

Dave Lewis, chief executive, said: “Through a very challenging period for everyone, Tesco colleagues have gone above and beyond, and I’m extremely proud of what they’ve achieved.  Their selfless efforts, combined with our embedded strategic advantages in stores and online, have helped to ensure that everyone can get the food they need in a safe environment.

“In just five weeks, we doubled our online capacity to help support our most vulnerable customers and transformed our stores with extensive social distancing measures so that everyone who was able to shop in-store could do so safely.

“The costs of doing this have been significant and only partly offset by business rates relief and increased volume.  We see the balance as an investment in supporting our customers at a time when they need it most.”