Booker lift for Tesco as it posts 10th quarter of growth in a row

Jon Yeomans

Ben Woods

TESCO’S acquisition of Booker helped boost its overall sales at the start of the year, offsetting a slight slowdown in its UK supermarkets, which were affected by the snowy weather.

Group like-for-like sales, which strip out new shops, rose 1.8pc in the 13 weeks to May 26, marking a 10th consecutive quarter of growth, despite falling sales in Asia and Europe. Tesco’s core UK business suffered a minor slowdown in growth, however, due in part to the Beast from the East weather front that battered the country at the beginning of March. UK like-for-like sales growth was 2.1pc, down from 2.3pc in the previous quarter.

The supermarket also began cutting prices on fresh food towards the end of the quarter in a sign that the grocery market remains highly competitive.

Booker, the wholesaler and distributor it bought last year, reported growth of 14.3pc, partly on the back of new business wins.

Speaking ahead of the grocer’s annual general meeting yesterday, Tesco’s chief executive Dave Lewis declared himself “delighted” with the progress made integrating Booker, which it bought for £3.7bn.

The company has begun selling select Booker products in its stores and is now sending out Booker products from one of its distribution centres.