Focus on service boosts Tesco sales

6th Oct 2016

Tesco sales have risen for the third consecutive quarter, as the supermarket giant works to make its shopping experience more enjoyable for customers.

The brand’s latest quarterly results, published this week, reveal positive sales growth in all regions across the group – a significant triumph following Tesco’s ranking in The Institute of Customer Service’s latest UK Customer Satisfaction Index. Despite scoring above the all-sector average for customer satisfaction, Tesco came bottom of the pack in The Institute’s analysis of supermarket brands.  

Group like-for-like sales, a key industry measure of underlying growth, rose 1% in the second quarter, while UK sales were up 0.6%. Total sales rose 3.3% to £24.4bn in the first six months of the year, as the supermarket cut prices, enhanced its product range and strengthened its focus on customer service.

The surge in sales comes after months of working towards new targets set following the accounting scandal that hit the brand two years ago. The supermarket now claims to be more competitive and to have rebuilt trust and transparency into the brand. According to its statement, ‘brand health’ has returned to its highest level in more than four years.  

“The entire Tesco team is focused on serving shoppers a little better every day,” says group chief executive Dave Lewis, who was brought in from Unilever to overhaul Tesco following the scandal. “Prices are more than 6% lower than two years ago, availability and service have never been better and our range is more compelling.” 

Earlier this year, Lewis fought back against discount chains Aldi and Lidl by investing heavily in a range of low-cost imported farm foods. While the range was criticised by the National Farmers Union for using misleading British-sounding labels, the value produce has been a hit with customers.

“Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere,” says Lewis.

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