Tesco results above average again

Tesco continues to go from strength to strength, registering yet another above industry average jump in sales in the three months to May 22.

UK like-for-like sales rocketed by 7.8 per cent in the quarter, which is said Tesco "significantly ahead of the industry".

Food sales have performed well. "I am particularly pleased that our core UK food business has continued to grow market share and to perform very strongly in the first quarter," said chief executive Terry Leahy.

However, much of the growth was down to non-food sales, assisted by a hike in the clothing department.

Tesco is therefore easily holding onto its leadership position in the UK, despite fierce competition from Asda, Sainsbury's and Morrison, bolstered by its recent acquisition of Safeway. Tesco has been forced to instigate a £100m price-cut programme to fend off its rivals.

Sales at Tesco's international operations increased 24 per cent - or 18 per cent when the effect of currency movements were stripped out. Every country expanded its business.

Reports recently said that Tesco is taking 1p out of every 8p spent by UK consumers and the company's success has drawn criticism that it is abusing its position.

Environmental campaigners Friends of the Earth (FoE) are to mount a protest outside the group's annual general meeting in London later on Friday to highlight their concerns.

FoE has branded Tesco the "incredible untamed beast" and accused it of forcing local businesses out of the high street and failing to protect the livelihoods of workers supplying it with goods.

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