Tesco posts first sales growth in more than 18 months

Sales at Tesco grew for the first time since March 2015 in the 12 weeks to 9 October, figures released on Tuesday (18 October) by Kantar Worldpanel showed.

According to data from the industry research group, the FTSE 100 retailer posted a 1.3% year-on-year increase in sales in the period, providing further proof that the turnaround plan implemented by chief executive David Lewis is paying dividends.

Kantar added that not only did Tesco, which is on track to post a £1.2bn ($1.5bn) operating profit this year, register higher sales for the first time in over 18 months, it also increased its market share on a year-on-year basis for the first time since 2011.

"Foods including ready meals and produce have been among the fastest growing areas at Tesco, helped by its 'Farm Brands' but also its standard own label lines," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

"Sales growth has been strongest among family shoppers, while improved trading from its larger supermarket and Extra stores has supported this month's gains."

The retailer was the only one of Britain's "big four" supermarket chains to record sales growth in the period, with sales at Sainsbury's and Morrisons down 0.4% and 3% respectively. Asda's plight, meanwhile, showed no signs of improvement, as the supermarket recorded a 5.2% drop in sales, compared to the corresponding period in 2015.

Among other supermarkets, Waitrose and the Co-op performed steadily, recording sales growth of 3.5% and 3.1% respectively, while Iceland posted a 6.8% year-on-year increase. Discount chains Aldi and Lidl, however, fared even better and continued to outperform the market, with the former recording an 11.4% increase in sales, while the latter recorded growth of 8.4%.