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| Tesco and Morrisons see sales slide | |
| (about 1 hour later) | |
| Tesco has reported a 2.4% fall in like-for-like UK sales in the six weeks to 4 January due to a "weaker grocery market". | Tesco has reported a 2.4% fall in like-for-like UK sales in the six weeks to 4 January due to a "weaker grocery market". |
| It also said international sales were down 0.7%, citing political instability in Thailand as partly behind the fall. | It also said international sales were down 0.7%, citing political instability in Thailand as partly behind the fall. |
| At the same time, rival Morrisons reported a 5.6% drop in like-for-like sales, which exclude new stores. | At the same time, rival Morrisons reported a 5.6% drop in like-for-like sales, which exclude new stores. |
| Tesco chief executive Philip Clarke said its move to open fewer stores in the UK was also behind the sales drop. | Tesco chief executive Philip Clarke said its move to open fewer stores in the UK was also behind the sales drop. |
| Shares in Tesco fell 1.6% on the news, while shares in Morrisons dropped 7%. | |
| He said focusing on opening smaller, express stores in the UK would help. | He said focusing on opening smaller, express stores in the UK would help. |
| Mr Clarke added: "Our overseas performance has improved since the third quarter, driven by an improving trend in Europe. This is despite continuing external challenges, including the recent political disruption in Thailand." | Mr Clarke added: "Our overseas performance has improved since the third quarter, driven by an improving trend in Europe. This is despite continuing external challenges, including the recent political disruption in Thailand." |
| Tesco said its website had done well over Christmas, with a 14% rise in the number of UK online sales. | Tesco said its website had done well over Christmas, with a 14% rise in the number of UK online sales. |
| For its part, Morrisons said it had seen a "disappointing" performance because of difficult market conditions and discounts by rivals. | For its part, Morrisons said it had seen a "disappointing" performance because of difficult market conditions and discounts by rivals. |
| In a statement, the supermarket said: "The difficult market conditions were intensified for Morrisons by the accelerating importance of the online and convenience channels, where Morrisons is currently under-represented, and by targeted couponing which was particularly prevalent in the market this Christmas." | In a statement, the supermarket said: "The difficult market conditions were intensified for Morrisons by the accelerating importance of the online and convenience channels, where Morrisons is currently under-represented, and by targeted couponing which was particularly prevalent in the market this Christmas." |
| It predicted its full-year profit would be at the "bottom of the range of current market expectation". | It predicted its full-year profit would be at the "bottom of the range of current market expectation". |