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Tesco sees UK sales fall by 0.9% | Tesco sees UK sales fall by 0.9% |
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Sales at Tesco's UK stores have fallen in recent weeks, taking the shine off a stronger performance at overseas outlets. | Sales at Tesco's UK stores have fallen in recent weeks, taking the shine off a stronger performance at overseas outlets. |
Like-for-like UK sales, excluding fuel and VAT, were down 0.9% in the 13 weeks to 26 November, the company said in a trading update. | Like-for-like UK sales, excluding fuel and VAT, were down 0.9% in the 13 weeks to 26 November, the company said in a trading update. |
The retailer said it was seeing the impact on consumers of rising unemployment and rising living costs. | The retailer said it was seeing the impact on consumers of rising unemployment and rising living costs. |
Total group sales rose 5.4%, excluding fuel, despite trading problems in Asia. | Total group sales rose 5.4%, excluding fuel, despite trading problems in Asia. |
The company, the UK's biggest retailer with about 2,700 UK stores, recently launched a £500m price-cutting campaign. | |
Despite the sales decline, Tesco insisted the results of its Big Price Drop, which saw the cost of 3,000 everyday products slashed, were "promising" as food volumes rose by a whole percentage point, offsetting the deflationary impact of its price cuts. | |
The 0.9% fall in UK sales, although broadly in line with what retail analysts had expected, marks the fourth consecutive quarter that sales have declined. | |
The figure was unchanged from a 0.9% sales fall Tesco had reported in the previous quarter. | |
Tesco, which trails France's Carrefour and US leader Wal-Mart by annual sales, makes about two-thirds of its sales and three-quarters of its profit in the UK. | Tesco, which trails France's Carrefour and US leader Wal-Mart by annual sales, makes about two-thirds of its sales and three-quarters of its profit in the UK. |
Philip Clarke, Tesco's chief executive, said: "We have made good progress in our third quarter against the background of challenging conditions for consumers in many of our markets." | Philip Clarke, Tesco's chief executive, said: "We have made good progress in our third quarter against the background of challenging conditions for consumers in many of our markets." |
Total UK sales including VAT and petrol grew by 6.7%, while the figure for total group sales was 7.2% higher. | |
Tesco's shares, which have lost about 6% of their value since the summer, opened down 0.3% on the FTSE 100. |