The Tesco share price has struggled to make any significant gains since reporting its full year numbers back in April, which is a little surprising when you look at how well management has managed to scale up the business to deal with the challenges posed by the pandemic.
The underperformance may well have had something to do with the guidance with management saying they expected sales volumes to decline as lockdown restrictions eased, however to offset those concerns, there was an expectation that costs would also fall as well.
One of the main growth areas for Tesco these past 15 months has been online sales, which have seen a doubling of capacity to 1.5m slots per week over the past 12 months, while sales grew by 77%. In Q1 this demand remained high at 1.3m orders per week, with two-year sales growth of 81.6%.
Today’s numbers also show that caution to have been slightly misplaced as like for like sales in the UK rose 0.5%, and by 1.3% for the UK and Ireland.
Group like for like sales rose to £13.36bn, with the UK contributing just over…
