Tesco Sales Growth Slows Amid Middle East Uncertainty
Tesco has reported a slower pace of sales growth in its latest quarter, with the supermarket giant citing uncertainty stemming from the ongoing conflict in the Middle East as a factor affecting household spending.
The retailer said total sales rose by 1% year-on-year to £16.8 billion during the 13 weeks ending May 30. While sales continued to increase, the growth rate was lower than in the previous quarter.
In its core UK and Republic of Ireland markets, like-for-like sales grew by 1.8%, supported by steady demand for food products. Food sales overall increased by 2.6%, with fresh food sales rising by 3.6%. Tesco’s premium Finest range also performed strongly, recording a 9% increase in sales.
Despite the slower growth, Tesco maintained its financial outlook for the year, forecasting operating profits of between £3 billion and £3.3 billion.
Chief executive Ken Murphy said the company had made solid progress during the quarter, highlighting improvements in customer satisfaction and continued sales growth following a particularly strong performance last year.
He noted that the conflict in the Middle East has created ongoing uncertainty for many households, but said Tesco remains focused on offering customers competitive prices, quality products and reliable service as they navigate economic challenges.
