Solid start to trading year for Tesco

Tesco has made a solid start to the trading year, although there has been a slowdown in like-for-like UK sales growth.

Like-for-like sales excluding petrol rose 4.5 per cent in the 13 weeks to May 27, compared with 4.9 per cent in the final quarter of last year.

UK sales growth has been hit too, as higher energy bills have served to reduce spending on the high street. But Tesco still saw a nine per cent uplift over the period.

Expansion overseas continues apace and group sales rose 10.4 per cent as Tesco remains on course to open a record number of foreign stores this year.

International stores contributed 15.1 per cent growth over the past quarter.

"International is showing strong growth and pushing on well with new store development and the UK has made solid progress on top of two years of exceptional performance," said chief executive Sir Terry Leahy.

Topics