Tesco boss hails progress
Tesco said UK like-for-like sales rose 0.3 per cent in the 13 weeks to May 28, its fiscal first quarter.
This compares with analysts' forecasts of growth of between 0 per cent and 0.5 per cent and builds on growth of 0.9 per cent in the previous quarter - its first quarter of underlying UK sales growth for over three years.
Group like-for-like sales rose 0.9 per cent.
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Hide Ad"We are encouraged by the progress we are making," said Mr Lewis.
"I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders."
Tesco also said it will sell its Harris + Hoole coffee chain to Caffe Nero in the latest of a series of disposals as the grocer focuses on its core supermarket business.
Mr Lewis said: "We have delivered a second quarter of positive like-for-like sales growth across all parts of the group in what remains a challenging market with sustained deflation.
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Hide Ad"In both the UK and internationally, we are putting customers at the centre of everything we do and re-configuring our business to serve them a little better every day. Our new fresh food brands are performing very well, with over two-thirds of our customers having bought products from the new range."
Over the past two weeks, Mr Lewis has offloaded a number of other non-core assets.
Tesco sold the Giraffe restaurant chain to Harry Ramsden owner Ranjit Boparan, and also disposed of its Turkish operations. It also sold Dobbies Garden Centres for £217m to investors led by Midlothian Capital Partners and Hattington Capital.
Phil Dorrell, partner at Retail Remedy retail consultants, said: "It is clear that Tesco have moved closer to customer insight led retail operations from recent store visits, moving beyond just putting sandwiches by the front door. Although they are looking good, Tesco are still a way from being best.
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Hide Ad"Tesco have started to streamline their business, off-loading Dobbies at a profit, The Turkish Kipa stores, Giraffe Restaurants and Harris + Hoole coffee shops. This sharpening of focus can only lead to better retail stores.
"Tesco are no doubt improving their offer and by concentrating on their own customers (not those of fringe businesses) they will continue to drive positive like-for-like sales."