Regulatory News

REG-Tesco PLC Trading Statement

Released: 13/01/2009

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20090113:RnsM5251L
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RNS Number : 5251L  
  
Tesco PLC  
  
13 January 2009  
  
TESCO PLC  
  
CHRISTMAS & NEW YEAR TRADING STATEMENT  
  
TESCO DELIVERS IN THE DOWNTURN  
  
The Tesco Group has delivered a strong performance and record sales over the 
Christmas and New Year period. Group sales increased by 11.6% during the seven 
weeks to 10 January 2009, driven by continued rapid international expansion and 
steady growth in the UK. This growth is against the background of challenging 
trading conditions in all of our markets caused by the global economic 
slowdown.  
  
Good International Progress  
  
Our overseas businesses generally saw good growth over the Christmas and New 
Year period, delivering a total International sales increase of 32.7%, helped by 
favourable exchange rate movements in Europe, and a particularly strong 
performance in Asia.   
  
In Europe, sales grew by 24%, with growth at constant exchange rates slowing 
compared with our third quarter, reflecting the economic conditions in parts of 
Central Europe and in Ireland. We have grown share in all of our markets.  
  
Sales in Asia increased by 43%, with strong growth in Korea, China and Malaysia. 
The integration of the acquired Homever stores in Korea is going well, with the 
introduction of the Homeplus Tesco ranges and lower prices proving very popular 
with customers. Sales at converted stores have increased by more than 50%.  
  
In the United States, Fresh & Easy has been coping well with a severe downturn 
in the West Coast markets in which it trades. Like-for-like growth is strongly 
double-digit for the 28 stores which have now been open more than a year.  
  
Steady UK Performance  
  
In the UK, like-for-like sales excluding petrol increased by 2.5% in the period. 
 We report like-for-like sales inclusive of VAT - and adjusting for the 
reduction in VAT rates, which came into effect in early December, growth on a 
comparable basis was 3.5%. The stronger growth in volumes and customer numbers 
we saw in our third quarter has continued.  
  
The Tesco team delivered an even better shopping trip for customers than last 
year and another profitable seasonal period for the business - by providing very 
good standards of service and availability.  
  
Non-food sales performance strengthened a little compared to our third quarter; 
with positive like-for-like sales growth, driven by good market share gains 
across most categories, including electrical, clothing and entertainment.  
  
Our services businesses have also performed well. On-line sales were very strong 
in the run-up to Christmas and tesco.com and Tesco Direct combined saw total 
sales up by over 18% to £273 million in the seven weeks.  Sales of digital 
products, including televisions and laptops, were particularly pleasing.  
  
Tesco Personal Finance (TPF) is now a wholly-owned subsidiary, with the 
completion of the acquisition in December of the 50% shareholding owned by Royal 
Bank of Scotland Group PLC. Customer response to our new Tesco savings products 
has been very encouraging - with over a thousand new accounts being opened per 
day recently. The resulting increase in balances means that TPF is now 
self-funding, putting it in a strong position to pursue the strategy we laid out 
for the business when we announced the acquisition last July.  
  
Our Preliminary Results for 2008/9 will be released on 21 April 2009.  
  
Contacts:-  
  
 
  Investor Relations:   Steve Webb        01992 644 800  
  Press:                Jonathan Church   01992 646 606  
                        Angus Maitland    020 7379 5151  
  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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