Whilst Tesco’s interim results yesterday showed how it was being impacted by cost inflation and the squeeze on consumers, some parts of its business posted strong sales figures as they recovered from the effects of the pandemic.
At Booker, like-for-like sales jumped 13.9% to £4.40bn, driven by the recovery in catering demand in the first quarter as it traded over a period of Covid restrictions in the prior year.
Catering sales grew by 35.5% to £1.83bn over the first half, driven by increased volume and inflation, which the group noted was particularly prominent in fresh food. The group highlighted that it had expanded its ‘Food Clubs’, which now have over 40,000 members who can access exclusive deals and discounts, and expanded a click & collect service for caterers to 134 sites.
Booker’s retail business also continued to grow, with sales up 6.7% (excluding tobacco) to £1.44bn. However, the wholesaler’s tobacco sales declined by 3.7% to £999m as people returned to overseas travel and duty-free imports increased.
Meanwhile, sales in Tesco’s 1,975 convenience stores grew by 6.5%, compared with a 1.4% rise in its large supermarkets. The retailer noted that sales in its c-stores located in towns and city centres jumped 25% after a “sharp recovery” in footfall in the wake of the pandemic restrictions.
The group opened 17 Tesco Express stores, 5 One Stop stores, 54 Booker Retail Partner stores, and 141 Premier stores during the first half period. It is planning a further 52 Express stores and 15 One Stop stores in the second half.
Tesco has also continued the roll-out of its Whoosh rapid grocery delivery service. It is now available from more than 400 Express stores, after rolling out to an additional 242 in the first half.
The group noted that the average basket size of the service has increased to around £25, with the offer now covering 2,600 products. It plans to roll out it out to a total of 800 stores by the end of its current financial year.
