The supermarket’s group like-for-like sales edged up 1% in its first quarter. UK like-for-like sales increased by 2.3% with the rise driven by 2.7% like-for-like growth in food.
Total volume growth in the UK remained positive and similar to the fourth quarter as Tesco continued to be more selective in the way its drove volume. This included a further reduction in short-term marketing activities in the general merchandise category, a reduction in promotions in household ranges and a focus on consistently low prices and bigger, better value pack sizes.
Online grocery saw a rise of 4.8% as the retailer introduced its monthly Delivery Saver subscription option to offer customers more flexibility.
Dave Lewis, Tesco chief executive, said: “In tough market conditions, we have stayed true to our commitment to helping customers – working closely with our supplier partners to keep prices low.
“Customers have responded by doing more of their shopping with us and as a result we continue to grow volumes, particularly in fresh food.”
Tesco also saw a 1.3% uplift in customer transactions with ten million more than last year.
International like-for-like sales were down 3% in the quarter as trade was impacted by the discontinuation of unprofitable bulk selling of products in Thailand.
Looking ahead, Lewis said: “This is a good start to the year, with our sixth consecutive quarter of positive like-for-like sales growth across the group. We are confident in our plans to create long-term, sustainable value for our key stakeholders and to deliver on the ambitions we have set out.”