Shares in Tesco, the UK’s largest retailer, dipped this morning (8 December) after the company saw growth in domestic sales slow over its most recent quarter.
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Excluding fuel, Tesco booked a 2.8% rise in like-for-like sales in the UK for the three months to 28 November.
The result compared to growth of 3.1% in the company’s second quarter. Tesco’s shares were down 1.4% at 429.5p at 09:16 GMT this morning.
The slowing UK like-for-likes came despite Tesco’s investment behind its Clubcard loyalty scheme in a bid to lure consumers.
However, Tesco said shoppers were “responding well” to the Clubcard initiative and chief executive Sir Terry Leahy added that the company made “good progress” during the quarter, with group turnover excluding fuel up 8.8%.
“We are seeing improving customer confidence and encouraging trends in both the UK and our international businesses, although recessionary conditions still exist in a number of markets,” Sir Terry said.
Tesco’s sales outside the UK were boosted by the weakness of sterling but, even at constant exchange rates, its international revenues remained buoyant and rose 12%.
The retailer said its US sales climbed by more than 37% in the wake of a marketing push at its Fresh & Easy arm this autumn.
