Shares in Tesco fell by over 2% this morning (10 June) as slowing UK sales took the shine off continuing international growth.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The UK’s largest retailer said like-for-like sales in the UK, excluding petrol, were up 3.5% for the 13 weeks to 24 May.
The announcement meant sales had slowed since Tesco’s last update in April, when it said sales were up “over 4%” for the opening five weeks of its first quarter.
Cautious consumer spending in the UK has weighed on Tesco’s non-food sales, which are growing at a slower rate than its grocery business.
Chief executive Sir Terry Leahy said Tesco had made “solid progress” in the UK but admitted there had been a “more cautious mood” on non-food spending.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We’ve made a good start to the financial year thanks to the growing breadth of the group and the strength of the Tesco business model,” Sir Terry said. “This has been achieved despite the more uncertain economic environment.”
Despite a solid performance overseas – sales rose 13.9% on a constant-currency basis – shares in Tesco had fallen by 2.2% to 392.90p at 10:37 BST.
