Leading UK-based grocery retailer Tesco has released what commentators have described as “disappointing” Christmas results for its core domestic market, which the company has blamed on snow-related disruption.
In its Christmas & New Year trading statement for the six weeks to 8 January 2011, the group said it had recorded a like-for-like sales increase of 0.6 per cent, a figure that was below the results achieved by rival retailers Morrisons and Sainsburys.
Outgoing chief executive Terry Leahy claimed that while the performance had been “solid”, it had been affected by “the disruptive effects of severe weather conditions” during the trading period.
This claim was echoed by suppliers to the retailer, who were also forced to deal with the heavy snows during December.
“The last few weeks of the year were pretty disappointing overall,” said one leading supplier of fresh produce to Tesco who asked not to be named.
“The weather was the main factor, with the major disruption caused by the snow resulting in consignments being late or in the wrong place.”
Outside the UK, the retailer said it had achieved substantially better results, with total sales growth in Asia and the US up by 24 per cent and 37 per cent respectively.
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