Tesco has reported rising half-year sales and profits as the supermarket received a boost from its takeover of wholesaler Booker. Here’s five things you need to know about the latest set of results:
1 - It’s the 11th quarter in a row of rising UK and Ireland like-for-like sales for Tesco, with a marked improvement to 4.2 per cent over the past three months.
2 - The results vindicate Tesco’s decision to complete a £3.7bn takeover of Booker. At the time some analysts weren’t so keen on the idea. However, in the latest set of results Tesco booked a 47.6 per cent jump in operating profits to £685m, £97m of which was linked to Booker. Can it keep up the momentum?
3 - Tesco isn’t done expanding. The UK’s biggest supermarket is directly taking on the likes of Aldi and Lidl, discounters who have taken a large chunk of market share from the traditional big four supermarkets, Leeds-based Asda, Sainsbury’s, Bradford-based Morrisons and of course Tesco. Tesco last month said it was launching its own range of discount stores called Jack’s.
4 - The reason why it’s called Jack’s? Well it’s named after Sir Jack Cohen, the gentleman who founded Tesco.
5 - Tesco’s omparable sales were up 2.3 per cent in the second quarter.