Tesco has reported its slowest Christmas trading period since the early 1990s, posting a 2.5 per cent increase in like-for-like UK sales, excluding petrol and new store sales.
The supermarket giant said the sales growth, which increases slightly to 3.5 per cent when adjusted for the December VAT cut, was achieved despite a “background of challenging trading conditions”.
It added that the figure was lower than the 4.5 per cent reported by Sainsburys for the 13 weeks to January 3 because of its larger non-food ranges.
According to the supermarket’s Christmas and New Year trading statement published yesterday morning, non-food sales “strengthened a little” compared to its third quarter performance and like-for-like sales were “positive”.
Total group sales over the festive period rose by 11.6 per cent, while online sales combined with those from Tesco Direct grew by more than 18 per cent to £273 million.
Total international sales were up by 32.7 per cent, helped by favourable exchange rates in Europe.
Sales in Asia grew 43 per cent, while European sales rose 24 per cent. The retailer added that its Fresh &Easy business in the US was “coping well” with store sales up in double digits.
Tesco finance director, Andrew Higginson said that the UK’s largest retailer will create around 10,000 jobs in the UK this year despite the economic slowdown.
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