Key facts
- Tesco's UK comparable sales grew 1.8% in the three months to May, down from 4.2% in the prior quarter.
- Overall group sales increased 1% to £16.8bn, while fuel sales surged 19.5% to £1.7bn.
- The retailer cited ongoing uncertainty for households due to the Middle East conflict and higher fuel prices as reasons for the slowdown.
- Online sales rose 8.9%, and overall group sales exceeded analyst expectations.
- Booker wholesale arm sales fell 3.2% amid tough high street conditions.
Tesco reported a significant slowdown in its UK sales growth during the first quarter, with comparable sales rising just 1.8%, a sharp decrease from the 4.2% growth seen in the previous period. The company attributed this deceleration to ongoing uncertainty among households stemming from the conflict in the Middle East and elevated fuel prices. Despite the slowdown, overall group sales saw a 1% increase to £16.8bn, buoyed by an 8.9% rise in online sales and exceeding City analysts' expectations. Fuel sales experienced a notable surge of 19.5% to £1.7bn, driven by higher petrol and diesel prices linked to geopolitical tensions. However, the wholesale arm, Booker, saw a 3.2% decline in sales amid challenging high street conditions. Chief executive Ken Murphy expressed satisfaction with the progress, highlighting strong customer satisfaction and continued sales growth, while emphasizing the company's focus on value for customers.