Tesco sales slow down in Q1

Tesco sales slow down in Q1
LONDON: The U.K. supermarket chain Tesco Plc said its like-for-like sales excluding fuel rose 4.7 per cent during the first quarter of the current fiscal that ended 26 May, which is marginally lower than the rise in the previous quarter.

The company had reported 5.8 per cent growth in the fourth quarter. It said while the food category sales had been good during the quarter, the rate of growth in non-food sales had eased in a more subdued market. Analysts had predicted a growth of 5.2 per cent.

Like-for-like sales, including petrol, increased 3.4 per cent. Total sales for U.K., excluding petrol, rose 8 per cent, and including petrol 6.3 per cent.

The supermarket chain said its international sales had risen 24.6 per cent at constant exchange rates during the quarter and 22.4 per cent at actual rates. It is planning to go ahead with opening new stores in the U.S.

The company said it had strong performance in Asia, where it saw sales up 32 per cent at constant rates.

Group sales rose 10 per cent over the same period, the company added.

Chief executive Terry Leahy said the company had a good start during the new year and its U.K. sales had seen good growth in the core food categories. The company is also improving its offers to its customers like the recent price cuts, he added in a statement.

Tesco's four main divisions are the U.K. business, international operations, non-food business and retail business. It has more than 2,800 stores across the world, 1,500 in the U.K. and Northern Ireland alone.