Tesco has posted its preliminary results for the 2023/24 financial year, reporting a strong sales performance and increased revenue.
Across the group, like-for-like retail sales have seen an increase. In the Republic of Ireland (ROI), life-for-like sales went up by 6.8% in the measured period.
Statutory revenue reached over £68 million, indicating an increase of 4.4%.
Innovative Steps
Strengthening brand perception in value and quality aided in increasing profits. The top UK retailer reported increased customer satisfaction across all areas.
Alluring promotions included price-matching Aldi products, low everyday prices on over 1,000 products, and reducing the price of over 8,000 products weekly for Clubcard holders.
Tesco also credited its own innovation for increased revenue. It launched over 1,000 new products and improved 2,700 existing lines.
Tesco also continued its store expansion, with four new stores opening in ROI, increasing reach and convenience for customers.
It has been working on AI systems to improve optimisation, increase energy efficiency, and streamline transport options.
It has also entered into a $125 million venture capital fund with other global grocery giants, including Ahold Delhaize and Woolworths, to accelerate retail innovation.
Looking Ahead
For the 2024/25 financial year, the retailer expects a retail profit of at least £2.8 billion.
It will focus on strategic priorities, which include increasing convenience, creating a competitive advantage through its Clubcard scheme, and redefining value, to place itself as a customer favourite.
Tesco chief executive Ken Murphy said, “This strong performance reflects the hard work of colleagues across the whole Tesco group, and their commitment to serving our customers.
“Customers are choosing to shop more at Tesco, which is reflected in growing market share, as they respond to the improvements we’ve made to the value and quality of our products.
“Inflationary pressures have lessened substantially, however, we are conscious that things are still difficult for many customers, so we have worked hard to reduce prices and have now been the cheapest full-line grocer for well over a year.”
Speaking to journalists following the posting of the results, Reuters reported that Murphy elaborated on inflationary changes.
He said, “I see [food inflation] stabilising. That kind of low single digit for the rest of the year is our planning assumption.”
He concluded his statement in the report optimistically, however, by saying, “We have strong momentum in our business, and are encouraged by signs of improving consumer sentiment.”
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