Including Tesco’s full year financial success and Target joining the Toy Industry Association.
The Source rounds up some of the key retail stories of the week.
Tesco has seen its group operating profit climb 30% to £1.3 billion, on sales of £49.9 billion (+4.3%) for its full year. In addition, like for likes at its core UK business rose for the first time since 2009/10 – up 0.9% while food like for likes grew 1.3%. However, statutory pre-tax profit was down 39% to £145 million – this reflected a £235 million exceptional charge following Tesco’s deal with the Serious Fraud Office and Financial Conduct Authority after the accounting scandal.
US retailer Target has joined the Toy Industry Association. The retailer will now play an active role in the association, with its senior compliance analyst – Don Asleson – joining TIA’s federal, state and safety standards/technical committees.
The warm weather gave a boost to John Lewis last week, with the department store chain seeing sales increase 3.5% to £82 million for week ending April 8. Perhaps unsurprisingly, outdoor living items were the star performer – sales were up 92.3%. Meanwhile, fashion sales grew 7.5%, with womenswear increasing 14.2%, while like for like sales of Easter-related gift food were up 9.1% on the comparative week from last year.
Data from the British Retail Consortium and KPMG has shown that overall UK retail sales declined by 1% in March on a like for like basis. In the five weeks to April 1, total retail sales dipped 0.2% – this is compared to flat growth in March 2016. However, these figures are distorted by the later Easter this year. In the three months to March, non food retail sales were down 1.1% on a like for like basis and 0.8% on a total basis – this marks the lowest three month average since May 2011.
WH Smith saw its travel division put in another sterling performance in the six months to February 28, with profits up 11% to £39 million and total sales up 10% (5% on a like for like basis). Trading profit on the high street, however, was flat at £53 million. Total sales at its 613 stores fell 4%, with same store sales dropping 3%
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