Overview
- Tesco said fuel sales rose 19.5% to £1.7bn in the three months to May as retail petrol and diesel prices climbed to multi-year highs.
- Total group sales grew about 1% to £16.8bn over the 13 weeks to May 30 while like-for-like UK and Republic of Ireland sales were up 1.8%, marking a slowdown from the prior quarter.
- Food sales increased 2.6% with fresh food up 3.6% and its higher-margin Finest range showing strong growth, which Tesco is using to protect margins.
- The group has rolled out an Aldi price-match across more than 2,000 Express stores and expanded Tesco Media as part of a broader strategy to defend market share.
- The spike in pump prices followed effective disruption of the Strait of Hormuz and RAC-reported peaks of about 159p per litre for petrol and 191p per litre for diesel, leaving profits and consumer confidence exposed if the route reopens and prices ease.