tiptrot.com
tiptrot.com January 18, 2018


Record Christmas for Tesco's online grocery business

13 January 2018, 12:58 | Cedric Leonard

GETTY BAD TIMES M&S's Christmas results come amid its store closures

M&S store

Online sales at M&S.com lifted 3%, while its ongoing move to pull out of global markets saw overseas sales slump 9.8%.

General merchandise comparable sales fell 0.6%.

Tesco, whose CEO is Dave Lewis, is the latest United Kingdom retailer to reveal its Christmas trading performance, which has been a mixed bag of results.

Tesco's UK LFL sales growth of 1.9% was driven by a 3.4% rise in food.

According to its latest trading update, third quarter like-for-like sales in the United Kingdom grew by 2.3 per cent - representing Tesco's eighth consecutive quarter of growth - and total sales grew 2.5 per cent.

Tesco did take a hit from lost tobacco sales after wholesaler Palmer & Harvey collapsed in November.

Shares fell more than 2% after its update.

James Grzinic, analyst at Jefferies, said: "Tesco's update confirmed a solid third quarter and Christmas, but not quite the dominant display expected by some". Morrisons and Co-op were notable performers.

It said own brand food ranges had performed strongly but general merchandise sales dragged like-for-like sales down by 0.6 percentage points over the Christmas period.

German chain Lidl claimed this week that it was the "fastest growing supermarket" over Christmas after booking record festive sales. Fellow German chain Aldi also notched up a double-digit rise, helping it rake in over £10 billion in turnover past year for the first time as festive shoppers snapped up luxury products and cut-price vegetables.


In its financial third quarter, M&S reported a 0.1% fall in total group sales to £3.167bn.

Once a British institution, M&S is facing fierce competition online and on the high street, with its efforts to revitalise its 134-year-old business hampered by a squeeze on consumer spending as inflation rises in Britain and wage growth falters.

M&S chief executive Steve Rowe said it had seen revenue grow both in-store and online in the weeks leading up to Christmas while it maintained its full-price stance in a "very promotional market" and did not participate in the Black Friday discount day.

It was another mixed bag for Marks & Spencer this Christmas with sales falling in its food and clothing and home divisions, though not by as much as the market had feared. Its food sales also fell on a like-for-like basis.

As ever, the all-important Christmas trading has brought a mixed bag of fortunes for retailers.

Recruitment firm Hays climbed nearly 3 percent on posting double-digit growth in Q2 net fees. It saw United Kingdom like-for-like sales tumble 2.6% in the 17 weeks to December 30, although "tactical promotional action" helped group sales improve over the six-week Christmas period, rising by 1.2% on a like-for-like basis.

The UK retail market faced a tough festive period as companies faced intense competition to win sales despite tightening consumer spending.

Group sales - which include the company's operations overseas - could only muster growth of 0.6% over the 19 weeks though, with an 11.1% decline in its Asia business as it ceases "unprofitable bulk selling activities" in Thailand.

But there was also plenty of cheer, with sales leaping at Ted Baker, upmarket fashion brand Joules and FatFace. Earlier this week, industry data had indicated that Tesco had been the best performing of the major supermarkets in the run-up to Christmas.



Other News

Trending Now

Watch Justin Timberlake's New Video Co-Starring a 'Filthy' Robot
The song will be featured on the 36-year-old singer's upcoming album Man of the Woods , which will be released on February 2. If you follow Justin Timberlake on social media, you already know that he has been teasing something new.

Meghan Markle Just Shut Down Her Instagram And Twitter Accounts
The organisation's CEO Shane Carey welcomed the visit saying: "We're having the spotlight shone on us from all the world's media". Meghan Markle's father, Thomas Sr., has nothing but good words for the royal wedding, amid rumors of a family rift.

Woman killed and 12 injured in Egypt hot air balloon crash
Egyptian authorities blamed strong winds, saying they had blown the balloon off its course and into a mountainous area. The incident comes after 19 foreign tourists were killed when their balloon caught fire in the same city in 2013.

Dana White reveals Conor McGregor return deadline
White said the lightweight belt "has to move on". "Conor has done very well". "That's his choice and his decision". He added: "As long as Conor is willing to [book a] fight by March, we could do Khabib versus Tony".

John Williams to compose the theme for Solo
His themes are now playing in Star Wars: The Last Jedi , but he also contributed a little something to Solo: A Star Wars Story . Michael Giacchino scored Rogue One: A Star Wars Story and James Powell is composing the score for Solo: A Star Wars Story .

Murray withdraws from Brisbane, Aus Open return in doubt
Murray has not played competitively since losing to Sam Querrey at Wimbledon in June previous year because of a hip injury. Nadal pulled out of the Brisbane event and a Sydney exhibition, while Djokovic withdrew from an Abu Dhabi event.

Two aircrafts collide at JFK airport in NYC, no casualties
Port Authority officials said no injuries were reported and that all passengers were able to safely disembark, NBC reported. It took more than three hours before the 325 passengers could exit the aircraft, according to a CNBC report .

Notebook 9 Pen, Notebook 9, and Notebook 7 Spin — New Samsung notebooks
According to Engadget , if you lose the hybrid laptop's S Pen, the Galaxy Note's stylus works just fine with the device. It's also commendable for Samsung to include backlit keyboard, curved keycap and a precise touchpad called Clickpad.

VAR frustration as Chelsea and Arsenal play out stalemate
Chances were few and far between as the number of matches played recently took its toll, with both teams looking sluggish. Arsenal and Chelsea finished the match with a 0-0 draw ahead of the second leg on January 24.

Stephen Bannon apologies for calling Donald Trump jnr 'treasonous'
The White House and President Trump have denounced Bannon and the book since excerpts began leaking last week. Ronald Reagan had the same problem and handled it well.