Tesco to reveal sales performance as cost of living still in focus

Tesco is the UK’s largest ecommerce grocery operator by a significant margin (used to be the world’s largest, if UK, Ireland and South Korea numbers were lumped together)

20% share price bump in last few weeks, likely referencing recent strong sales results, even considering competition from Aldi, Lidl, Sainsbury’s (and a somewhat distracted Asda, Morrisons).

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Tesco Interim Results Trading Statement 2023/24

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Useful facts buried in the detailed docs behind the headline presser

  • Online performance continues to outpace market, share up +71bps YoY; switching gains from online competitors (switch based on Kantar data, does not include qcommerce switchers I think)
  • Strengthened online availability to 97.6%; number of ‘perfect orders’ up +12ppts YoY
  • Opened a further three UFCs since February, adding 1m order capacity per year; now at nine UFCs in total
  • Tesco Whoosh now in 1,414 stores, making rapid delivery available to c.60% of population; now offering larger baskets (400 stores added in the last 6 months)
  • Launched ‘Chef Central’ in Booker, offering multi-site national and regional customers the ability to offer standardised menus through a defined product range, with great value products delivered directly to their doors
  • Introduced 500th electric customer home delivery van; fleet to be fully electric in the UK by 2030

UK Online performance H1
(MRT note does not include Ireland/Central Europe, nor B2B online from the Booker division)
23/24, then One-year change, all increases but I think less than pandemic peak
Sales inc. VAT £3.0bn 10.0%
Orders per week 1.18m 4.2%
Basket size £98 5.2%
Online % of UK total sales 13.0% 0.1ppts
This 12-13% number has been this number for more than a decade

It is the orders per week and percentage share that is interesting.

Also notice the significant share buyback flow.