Newspaper article The Journal (Newcastle, England)

Tesco Sounds Consumer Spending Warning despite Reporting 3.5% Increase in Sales; in Association with RBS

Newspaper article The Journal (Newcastle, England)

Tesco Sounds Consumer Spending Warning despite Reporting 3.5% Increase in Sales; in Association with RBS

Article excerpt

THE UK's biggest supermarket has sounded a cautious note on consumer spending prospects despite reporting "solid" first-quarter sales.

Tesco saw healthy food sales in the three months to May 24 but the pace of sales growth among non-food goods slackened as shoppers cut back on "big-ticket" items such as electrical products.

Chief executive Sir Terry Leahy said: "Although food category performance has been good, our rate of growth in non-food has eased as consumers have become more cautious with their spending during recent months."

Excluding petrol, like-for-like sales grew 3.5% - in line with management hopes and just within the 3.5%-4% range looked for by City analysts.

At the time of the retailer's April annual results, same-store sales were running above 4%, although this eased back as the firm also faced fiercer competition from the likes of Asda, Sainsbury's and Morrisons.

Panmure Gordon's Philip Dorgan, who expects Tesco to outperform its rivals in the coming months, said: "These numbers are fine, without punching the lights out, with some mixed messages on the consumer. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.