Tesco To Unveil Worst Sales Figures In 16 Years

Tue, 02 Dec 2008
 
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Tesco is bracing itself for a tough time as it prepares to reveal its worst UK annual sales figures since the early 1990s recession .

The supermarket giant is set to post its third-quarter figures later today, with like-for-like sales growth in its core UK business likely to be just 1.9 per cent – a significant drop from the 4 per cent growth reported this time last year.

Analysts are waiting to see whether Tesco’s decision to launch a new discount range, intended to take on the likes of Aldi and Lidl, has paid off.

Consumers have been turning to discount food stores as they look to scale back their spending to cope with the economic downturn.

Tesco’s major rivals – Asda, Sainsburys and Morrisons - have profited from Tesco’s recent poor performance by increasing their share of the UK grocery market in the build-up to the festive period.

Last week Sainsbury's announced an impressive 13 per cent hike in profits, while Morrisons is expected to post an impressive 7.2 per cent rise in like-for-like sales on Thursday.

Tesco, the world’s third-largest retailer, has also been hit by problems abroad, with expansion plans in Thailand, South Korea and America not going according to plan.

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