Tesco profit past £1bn mark E-mail
Wednesday, 04 October 2006

British supermarket chain Tesco said on Tuesday that half year profits rose 10.3 percent past the £1 billion mark. Sales for the world's fifth largest chain rose 12.7 percent to £22.7 billion. The group said results had been driven by a "particularly strong" second quarter thanks to the heatwave effect of the past summer. "Growth in customer numbers was the main driver of our sales, with gains coming from across the market," said chief executive Sir Terry Leahy. "Customer spend per visit also rose in the period despite deflation in our stores." The announcement comes amidst rapid expansion plans. The group is looking to open almost 400 stores overseas this year, creating 20,000 new jobs. It also said it was on track to opening its first stores in the US next year. Total international sales increased 21.3 percent to £5.3 billion.

Currently, almost one-fifth of the group's £3.5 billion UK sales are derived from non-food products. This signifies a rise of 12.6 percent compared with the same period last year. Tesco is continuing to offer more non-food items like clothes and DVDs, and will even launch its own brand software. Clothing sales gained 19 percent "in a subdued market", while consumer electrics rose 36 percent.


 
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