Tesco and M&S ring up strong Christmas food sales as Asda struggles
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Tesco and Marks and Spencer both reported healthy food sales growth over Christmas, extending a run of strong performance stretching back several years.
Tesco, the UK’s largest supermarket chain, reported on Thursday that like-for-like sales in its stores in the UK rose 3.7 per cent in the 19 weeks to January 3, giving it its highest share of the British grocery market in more than a decade.
The retailer raised its full-year operating profit forecasts to the upper end of a previously disclosed range of £2.9bn to £3.1bn, following its strong Christmas performance.
Meanwhile M&S reported that its food sales grew 5.6 per cent on a like-for-like basis in the 13 weeks to December 27. Sales at Ocado Retail, its online grocery joint venture, rose 13.7 per cent over the same period.
The company’s overall results, however, were dragged down by its clothing business, where like-for-like sales fell 2.9 per cent. M&S blamed the decline on weak high street footfall and the lingering effects of last year’s cyber attack on its stock management processes.
Industry figures indicated that Asda was the big loser among supermarkets at Christmas. Sales at the UK’s third-largest supermarket chain fell 6.5 per cent in December, according to researcher Nielsen IQ.
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