Tesco reports 69% growth in online sales as profits surge

Tesco has recorded a 28.7% rise in pre-tax profit and a 0.7% increase in revenue in the 26 weeks up to 29 August 2020, with the supermarket performing strongly during Covid-19 pandemic.

This was helped by adapting quickly to the consumer shift to eCommerce since the start of the crisis, with Tesco noting it had more than doubled its online delivery slots to 1.5 million per week. Overall online sales for the period surged 69% year-on-year and the rate of growth increased further in the final three months to 90%.

In August, Tesco revealed it is creating 16,000 new jobs as it looks to support the “exceptional” growth of its online business during the pandemic.

Tesco added that convenience store sales went up 7.6% in the half year as a result of more local shopping. And it said it had adjusted its offerings to major shifts in customer buying habits in the UK as a result of Covid-19, including food sales going up by 9.2% and clothing falling by 17.2%.

Ken Murphy, CEO of Tesco commented: “The first half of this year has tested our business in ways we had never imagined, and our colleagues have risen brilliantly to every challenge, acting in the best interests of our customers and local communities throughout.  I would like to thank all our colleagues for their amazing contribution and I am delighted and proud to be part of such an incredible team.

“We are absolutely committed to continuing to invest in value for customers and safety for all in these uncertain times.”

Tesco today also announced the appointment of Imran Nawaz as its new chief financial officer, with effect from April 2021. Nawaz is currently CFO and executive director of Tate & Lyle and senior vice president of finance for Mondelez Europe. He has also worked at Kraft Foods.

John Allan, chairman of Tesco said: “After an extensive search and selection process, I am delighted to welcome Imran to our Board as CFO. He brings a wealth of skills, experience and knowledge in the food sector and will be an incredibly valuable asset to Tesco.”