Tesco’s UK sales growth more than halves amid Iran war uncertainty
Summary
Tesco’s sales growth in the UK slowed down significantly due to uncertainty caused by the conflict in the Middle East. While online sales increased strongly, overall sales growth dropped, and sales at its wholesale division fell.Key Facts
- Tesco’s UK sales growth fell from 4.2% to 1.8% in the three months ending in May.
- Online sales increased by 8.9%, helping to lift group sales by 1% to £16.8 billion.
- The conflict in the Middle East caused higher fuel prices and made consumers less confident about spending money.
- Tesco expanded its price-match promise against Aldi to over 2,000 Express stores and launched 520 new products.
- Sales at Tesco’s wholesale division, Booker, fell by 3.2%, affected by tough conditions on the high street.
- Tesco expects to meet its profit target of around £3.25 billion for the financial year despite the sales slowdown.
- In the previous year, Tesco’s profits rose by 8.5% to £2.4 billion with sales increasing by 4.3% to £66.6 billion.
- Tesco’s shares dropped 2.4% during early trading following the slow sales growth report.
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