Clothing sales rise at Tesco in spring quarter
UK supermarkets giant Tesco isn’t known for sharing lots of information about how well its fashion operations are faring but on Friday, in its latest quarterly trading update, it told us that its clothing business is doing reasonably well.
In the 13 weeks to May 26, like-for-like clothing sales were up 1.7%, which is good in the current under-pressure UK market, and it doesn’t seem to be resorting to markdowns as full-price clothing sales in stores are heading upwards.
The company said that “full price sales participation in stores increased by 140 basis points year-on-year to over 87%.”
However, the firm’s general merchandise offer wasn’t so well received and “negatively impacted total sales growth” as it continued to “refine” its ranges. However, seasonal categories “performed particularly well.”
We should hear plenty more about how clothing and general merchandise are doing in the months ahead as the company works through its decision to entirely refocus its non-food offer by closing Tesco Direct. That website is set to cease trading as of July 9. The company’s F&F fashion offer is available on the main Tesco.com website and the company has already added items such as toys, homeware and cookware to the offer there.
The existing offer will be “selectively built on” in order to create a simpler online experience.
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