British supermarket giant Tesco has reported a “strong performance” for its clothing category, which it said had helped boost its Home and Clothing division where sales rose 0.3 percent.
This was revealed in the company’s latest interim report for the financial year 2024/25, when volume growth and market share gains were notably highlighted by the retailer.
Home and Clothing sales had been impacted by a (1.3)ppts drag from the transition of a new partnership with The Entertainer, which comes in regards to the retailer’s toy selection and thus means that toy sales are no longer recognised.
The transition is expected to be completed by the second half of the year.
Excluding this impact, the category’s sales grew 1.6 percent, an uptick Tesco accredited to clothing, for which it said it had continued to “grow ahead of the broader store-based clothing market”.
Overall, Tesco group sales for the period rose to 31.463 million pounds, up by 3.5 percent at actual rates, and 4 percent at constant rates.
In the report, Ken Murphy, CEO, said: “We are in good shape, with volume growth delivering strong financial performance. This builds on our track record of delivery for all our stakeholders.
“Our strong momentum allows us to continue to focus on value, quality, innovation, and the broader customer experience, whilst investing in growth opportunities in a disciplined, returns-focused way.”