Tesco and M&S see sales soar over Christmas despite the growing cost of living crisis
Supermarkets Tesco and Marks & Spencer both saw strong trading over the Christmas period as higher prices boosted their sales, despite the growing cost of living crisis.
Tesco said like-for-like sales at its UK stores rose by 5.3% while MS’s grew by 7.2%.
Tesco – the UK’s largest supermarket – noted the strong demand for its budget items though shoppers had also been treating themselves to Tesco’s Finest range.
M&S had performed well across food, clothing and home.
Tesco reported a rise in sales for the 19 weeks to 7 January, growth was driven by the pace of rising prices – or inflation – rather than people buying more items.
Tescos’ chief executive said the volume of goods sold was marginally lower than in the same period last year. But he said the UK consumer “has proved quite resilient.”
The rising cost of living crisis is putting pressure on household budgets.
Tesco’s strong Christmas trading was due to little competition from discount rivals Aldi and Lidl – Tesco offered more deals.
The growth included strength in fresh food with 8.1% growth, as shoppers continued to spend on essentials.
Tesco is hoping inflation would peak towards the middle of the year. “We think and hope we will start to see inflation come off in the second half of the year,” he said.
