Extremely strong sales of consumer electronics drove growth in Tesco’s non-food operations, helping the group’s total sales reach £51.8 billion – an increase of 11.1 per cent over the 2006/7’s figures.
It saw UK non-food sales rise 8.7 per cent on the same period last year, reaching £8.3 billion – boosted in part by the continued growth of Tesco Direct.
Laptops in particular performed well, which combined with flat screen television and digital camera increases drove a 31 per cent sales growth over 2007. Tesco added that it intends to increase sales of non-food items to be on par with those of its food operation.
Continued deflation across its non-food stock also managed to offset much of the retailer’s food price increases, with the price of consumer electronics and entertainment products being among those experiencing strong deflation.
The group also announced that it was planning to open 2.3 million sq ft of new trading space during 2008.
"The breadth of the Group and the strength of our business model have enabled Tesco to deliver another year of double-digital sales, profit and earnings per share growth – in challenging market conditions," commented Tesco’s chief executive Terry Leahy.