Tesco sees sales growth fall
Supermarket giant Tesco played down fears of a slower market today despite seeing sales growth in the UK fall from earlier in the year.
Chief executive Terry Leahy said the group was delivering on its strategy as it registered a 13.3% jump in first half profits to £545m (€866m).
Underlying sales growth across the group’s UK stores fell to 3.9% in the six months to August 10 after an increase of 4.5% in the first quarter.
But Tesco said the dip was simply a reflection of “more normal” sales levels in the food retailing sector after last year’s boom.
Supermarkets feasted on high sales growth last summer as the foot-and-mouth disease outbreak pushed up fresh food costs and customers splashed out on pricier products.
Tesco said its focus on price had “served us well” in the current trading environment.
