TESCO: Supermaket Profit Rise Bucks Trend

Date Posted: 17 April 2008

On the 14th April 2008, Tesco announced a profit rise of £2.8billion; up 11.8% vs. 2007.

Tesco’s profit report bucks the current turndown trend seen by the retail sector. The company noted that the growth was aided by online sales, non-food items and international stores figures all performing well.

In the build up to the announcement, Tesco saw it’s Index score increase, driven by steady increases in the brands’ General and Corporate scores.

On the 7th April, Tesco’s Index score was 26%, with a score of 5% and 26% for the brands’ Corporate and General scores respectively. By the 14th April, Tesco’s Index score had increrased to 30%, with Tesco seeing it’s General score improve 8% points to 34% and the brands’ Corporate score increase to 14%.

Many retailers noted that an early Easter had caused an unexpected dip in sales figures, though it appears this did not affect Tesco. It will be interesting to see if the brand can maintain these scores in the coming months.

Richard Wood, BrandIndex Client Executive

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