Supermarket giant Tesco has reported strong sales growth, weathering the global credit crunch with an 11.8 per cent increase in group sales for the third quarter.
In the UK, Tesco continues to defy concerns about the impact of high interest rates and the affects of the ongoing credit crunch with a 7.6 per cent rise in total sales over the third quarter.
Like-for-like sales, excluding petrol, were up by 4.1 per cent over the same period – an improvement on second-quarter results which were hit by poor weather conditions.
The group said its non-food ranges had also performed well, largely aided by the launch of its Tesco Direct online shopping and delivery service .
A trading statement released yesterday the retailer revealed strong revenues from its international businesses had driven its performance over the period, while stressing that its core UK business had also made “solid progress”.
Tesco chief executive Sir Terry Leahy said: “Overall sales growth has strengthened in the period, with international delivering a particularly strong performance, and the UK has again done well, with good growth in our core food categories.”
Sir Leahy also revealed the opening of the supermarket group’s first grocery stores in the US had been “very well-received” by customers.
The company’s ‘Fresh &Easy’ chain opened in California last month followed by additional stores in Los Angeles, Las Vegas, San Diego and Phoenix, while plans for further expansion in the US are already underway.
The Tesco statement also revealed the performance of its international operations had been boosted by strong sales in Asia, where sales grew by 29 per cent in the 13 weeks to November 24th.
Tesco also reported “rapid growth” in all its central European markets.
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