LONDON (FNS) -- Tesco here said heavy marketing spending, a new loyalty card program and the warm British summer contributed to increased sales and earnings in the 24 weeks ended Aug. 12.
ersions were made at $1.55 equals one British pound.
Sir Ian MacLaurin, chairman, said that same-store sales at the group rose 10% in the period, including 4% inflation. But while Tesco has in the past year become the United Kingdom's market share leader, gross margins have suffered because of high investment in marketing initiatives. Gross margins fell 0.3% during the half, he said.
The company said its core Tesco chain had an 18.9% rise in operating profit to $458.8 million, on a 19.4% increase in sales to $7.7 billion.
The William Low chain in Scotland, which Tesco bought last year, contributed operating profit of $20.2 million on sales of $392.2 million.
