Tesco has reported a surge in clothing sales in its preliminary results for the 2021/22 financial year. The supermarket, known primarily for its food offerings, highlighted the success of its fashion division, which experienced a significant increase in sales. Total group sales for Tesco increased by 2.5% to £54.768 billion, while adjusted operating profit rose by 58% to £2.825 billion.

The growth in non-food sales, driven primarily by clothing, was a standout area for Tesco. The clothing division saw a substantial increase of 19.4%, attributed to several factors. Customers were spending more time shopping in-store, leading to increased sales. Additionally, Tesco adjusted its clothing offerings in response to changing customer demand. Although the monetary value of the fashion sales was not disclosed, Tesco noted that the growth was particularly strong in Womenswear and Kids. The supermarket achieved this growth by rebalancing the space between Clothing and General Merchandise in 116 of its large stores. By making the clothing section more prominent, Tesco created a more appealing shopping destination while simplifying and making the adjacent General Merchandise ranges more convenient to browse.

In recent years, fashion and general merchandise have become increasingly important for supermarket sales. While smaller physical stores may not have an extensive clothing selection, superstores have dedicated substantial space to fashion. These superstores have also embraced the convenience of online shopping, offering click & collect options. This strategy has allowed brands like Tesco’s F&F, Sainsbury’s Tu, and Asda’s George to secure larger shares of the overall UK clothing market.

The expansion of fashion offerings in supermarkets reflects the evolving retail landscape, where consumers are seeking convenience and variety in their shopping experience. Supermarkets are capitalizing on this trend by providing customers with accessible and affordable clothing options within their familiar grocery shopping environment. Tesco’s success in the clothing sector serves as a testament to the potential for supermarkets to diversify their offerings and tap into new revenue streams.

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Tesco Fashion
BBC News: Tesco reports surge in clothing sales