Tesco sales weaker than expected
Despite posting a rise in third-quarter sales, Tesco’s latest performance is weaker than analysts had expected.
Britain’s biggest supermarket chain reported that UK like-for-like sales rose by 2.8% (excluding petrol and adjusted for lower VAT) in the 13 weeks to 28 November. However, analysts were forecasting around 3%.
Overall, group sales were up by 8.8% (excluding petrol) compared with the previous quarter thanks to a stronger performance overseas, and chief executive Sir Terry Leahy insists that Tesco was coping well with the economic downturn.
“We are seeing improving customer confidence and encouraging trends in both the UK and our international businesses, although recessionary conditions still exist in a number of markets, he says.
Leahy has also announced that Tesco will cut prices on 200 new products each week in the lead up to Christmas.