Tesco's UK Sales Growth Slows Amid Middle East Conflict Uncertainty

AI Summary

Tesco's UK sales growth has more than halved due to uncertainty caused by the conflict in the Middle East. The retailer's comparable sales rose 1.8% in the three months to May, below the 4.2% reported in the previous quarter.

Tesco's Sales Growth Hits a Snag

Tesco's UK sales growth has more than halved as it said the conflict in the Middle East had created “ongoing uncertainty for many households”. The UK’s biggest retailer said comparable sales rose 1.8% in the three months to the end of May, well below the 4.2% reported in the previous quarter.

The Impact of Middle East Conflict on Sales

The slowdown in UK sales growth reflected dampened consumer confidence in the face of higher fuel prices linked to the conflict in the Middle East. Exceptionally warm and sunny weather during the same period last year helped to increase sales of food and drink, distorting comparisons with this year.

Financial Performance

Comparable sales rose 1.8% in the three months to May.
Online sales rose 8.9%.
Group sales rose 1% to £16.8bn.

Future Outlook and Strategies

Tesco said it had extended its pledge to match the German discounter Aldi on leading product lines to more than 2,000 of its small Express stores and launched 520 new products. The company remains focused on giving customers the best combination of price, quality, and service.

Ken Murphy, the chief executive, said: “I am pleased with our progress in the first quarter, with customer satisfaction up strongly and continued sales growth building on the exceptional performance we delivered last year.”