As was widely expected, supermarket giant Tesco (TSCO) had a disastrous third quarter. UK like-for-like sales (excluding VAT and petrol) dipped 1.5 per cent and international sales fell 4.6 per cent, leaving group revenue 2.5 per cent lower. In fact, sales declined in every single region.
Chief executive Philip Clarke blamed lacklustre performance in the UK on squeezed household budgets, but added that Tesco was tackling problems at home by revamping its general merchandise offer and reducing the amount of new space it opens. The supermarket has also re-launched its Finest range and is refurbishing stores, while investing in its online grocery service.
Overseas, trading proved challenging, notably in Thailand, where sales fell 6.9 per cent and in Ireland, where sales slumped 8.1 per cent. Overall, revenue in Asia declined by 5.1 per cent, and in Europe it fell 4 per cent. On a positive note, trading in Poland and Turkey improved.
