Games drive Tesco profits

by Lisa Foster
The supermarket has become the first UK retailer to break the £2bn profit mark, with turnover also increasing by 12.4 per cent to reach £37.1bn, the UK making up £29.5bn of that figure.

Tesco has achieved this success, despite increased competition in the grocery sector, thanks to its low-price strategy, plus its aggressive moves into more profitable non-food lines – including games.

Sales of non-food products, indeed, grew by 17 per cent, with entertainment sales up by 20 per cent.

“We’ve seen that non-food is growing faster (than the group at large) – we would hope we could keep up the good rate of growth,” commented chief executive Terry Leahy.

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