Tesco boss Philip Clarke will not have thanked the way the financial stars aligned this week to bring Tesco and Sainsbury’s results on the same day, albeit for different reporting periods.

Tesco boss Philip Clarke will not have thanked the way the financial stars aligned this week to bring Tesco and Sainsbury’s results on the same day, albeit for different reporting periods. Sainsbury’s is once more burning brightest with a 1.9% like-for-like uplift in its second quarter compared with a fall in Tesco’s UK interim like-for-likes of 0.7%, although second-quarter sales rose 0.1%.

However, the day not only brought a fascinating opportunity to take stock of the general health of the UK shopper but the chance to scrutinise efforts by Clarke and his UK turnaround team.

Despite the difficult economic backdrop, Sainsbury’s outperformed expectations, suggesting it has continued to gain market share, boosted by its association with the Paralympics and the success of Brand Match.

By comparison, Tesco’s UK investment has yet to show sustainable gains. But as I have noted before, Tesco’s numbers are less a reflection of a misfiring turnaround strategy and more to do with the structural issues that strategy is trying to remedy.

While the retailer’s first fall in profits since 1994 has grabbed the headlines, the growth in like-for-likes in the second quarter is the first rise in 18 months and an indication the UK is bottoming out.

Doubts still remain, particularly about the pace at which Tesco can refresh its store estate. And, with so much focus – particularly from Clarke himself – on the core UK business, it should be a concern that the international numbers have begun to slip.

But Tesco’s response to its challenges continues to be decisive and its attention to detail should concern rivals. Added to the grocer’s continued leadership online and in convenience, the next 12 months should see the recovery accelerate.

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