Tesco results will see Jack’s figures to fore

Tesco chief executive Dave Lewis will be quizzed on the performance of the supermarket’s new discount store format this week, as the group unveils its half-year results.

Jack’s, launched just weeks ago, aims to take on German discounters Aldi and Lidl.

Tesco plans to open up to 15 Jack’s branches over the next year, and the City will be keen to hear how the first two stores have been trading.

“There has been much speculation regarding the group’s plans for its new discount outlet, Jack’s, and how many stores it will close or convert,” said Graham Spooner, investment research analyst at The Share Centre.

Mr Lewis said Jack’s prices will be “the cheapest in town” at each location at the launch.

He added that the move, which has been under discussion at the supermarket for more than two years, is in response to consumer desire for a “smaller, simpler range at shops”.

City analysts also expect the grocery giant to report its 11th consecutive quarter of like-forlike sales growth.

For the first half as a whole, Tesco will report UK and Ireland like-for-like sales growth of 3.3%, according to consensus estimates.

David Mccarthy, analyst at HSBC, said warm weather over the summer had provided a boost to supermarkets.

“We expect slightly better half one sales than consensus for the UK like for like,” Mr Mccarthy said.

“Consensus is implying a second-quarter slowdown in sales, whereas we believe that total sales will prove to be better – helped by the strong summer.”

Tesco’s £3.7 billion deal to take over cash-and-carry operator Booker is also expected to boost profits at the UK’S largest retailer.

Tesco chief executive Dave Lewis.