# Tesco achieve further growth on top of exceptional performance last year

- Link: https://www.directorstalkinterviews.com/tesco-achieve-further-growth-on-top-of-exceptional-performance-last-year/4121043144
- Published: 2022-01-13T07:33:51+00:00
- Author: Amilia Stone

**[Tesco plc](https://www.directorstalkinterviews.com/ftse-company/tesco-plc/tsco.l)**(
LON:TSCO) has provided its Q3 and Christmas Trading Statement 2021/22.

**UK:        Continuing strong momentum – further growth on top of exceptional performance
last year**

·  Highest share in 4 years; growing share both in stores & online; 22 consecutive
periods’ switching gains^(3)

·  Brand index up 177bps^(4) driven by market-leading improvements in value perception(
+199bps^(4)) and quality perception (+149bps^(4))

·  Strong large store and convenience performance; online sales remain significantly
ahead of pre-COVID levels (19wk 2-yr LFL +58.7%) with c.1.2m orders per week; highest
online share since pandemic began

·  Over 95% promotional sales now on Clubcard Prices; 8.5m customers now accessing
Clubcard via app

·  Tesco Whoosh superfast home delivery service now in >100 stores; Bradford UFC
opening next week

**ROI:       Sales up strongly on two-year basis; one-year growth on top of exceptional
Christmas last year**

·  Highest share growth in market over Christmas period^(5) including strong online
performance

·  Announced intention to acquire ten Joyce’s Supermarkets in Galway^(6)

**Booker: Both Retail & Catering sales well ahead of pre-COVID levels **(19wk 2-
yr LFL Retail: +19.5%, Catering: +8.8%)

·  Retail sales supported by strong availability; Premier, Londis & Budgens performing
particularly well

·  Strong Catering growth for 19wk period on both 1-yr and 2-yr basis despite Omicron
impact

**CE:         Market outperformance, particularly in the Christmas period**

·  Year-on-year easing of COVID restrictions enabled customers to access full strength
of our offer

·  Customers responded well to our core food proposition; significant increase in
clothing and GM sales

**Bank:       **Sales +33.6%, driven by the full ownership of Tesco Underwriting
^(7) this year.  Excluding Tesco Underwriting, sales declined (5.9)% due to reduced
income from lower unsecured lending balances YoY

**Outlook:**** **As a result of stronger than expected sales to date, we now expect
retail operating profit slightly above the top-end of our previous £2.5bn to £2.6bn
guidance range;  we expect Bank operating profit to be between £160m and £200m, 
due to the effect of more favourable economic forecasts on our provision for expected
credit losses

> **Ken Murphy, Chief Executive**:
> “We are delighted that we were able to help our customers have a great Christmas.
> Despite growing cost pressures and supply chain challenges in the industry, we
> continued to invest to protect availability, doubled down on our commitment to
> deliver great value and offered our strongest ever festive range.  This put us
> in a strong position to meet customers’ needs as, once again, COVID-19 led to 
> a greater focus on celebrating at home.  As a result, we outperformed the market,
> growing market share and strengthening our value position.
> The entire Tesco team is at its best when it is delivering for customers and we
> are really pleased that so many customers who were new to Tesco during the pandemic
> have remained with us – either continuing to shop online or becoming regular in-
> store customers.  This reflects the hard work and commitment of our fantastic 
> colleagues and I want to thank every single one of them for the incredible contribution
> they make every day.”

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