LAST UPDATE 09:36
Tesco, Britain’s largest retailer, raised earnings estimates for the second time in four months as it announced an increase in Christmas sales, despite a difficult comparison to 2020, when lockdown spending on the coronavirus increased .
The group noted that comparable sales in the United Kingdom rose 0.2% year-on-year in the third quarter to November 27 on an annual basis, and were 0.3% higher in the six weeks to January 8.
Tesco predicts that retail trade will be “slightly higher” than the previous high of 2.5-2.6 billion pounds (3.43-3.57 billion dollars).
The upgrade in earnings comes after the respective optimistic estimates of its also British counterpart, Sainsbury’s, and German Aldi and Lidl.
Supermarkets in the UK are facing high comparisons compared to Christmas 2020, when the lockdown led to an increase in drinks and food.
While restrictions for this Christmas were less severe, supermarkets continued to take advantage of consumer concerns about the spread of Omicron, which kept them away from bars and restaurants.
Tesco, which holds 28% of the UK grocery market, said comparable sales in the UK rose 6.9% from the 2019-2020 pre-pandemic period.
Sales in the six weeks of the Christmas season rose 8.8% on the same basis.
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Source From: Capital
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