Key facts
- Tesco's comparable UK sales growth slowed to 1.8% in the three months to May.
- This represents a decrease from 4.2% growth in the prior quarter.
- Group sales increased 1% to £16.8 billion.
- Online sales saw an 8.9% jump.
- Booker wholesale business sales fell 3.2%.
Tesco's comparable sales growth in the UK decelerated to 1.8% in the first quarter of the year, a notable slowdown from the 4.2% recorded in the preceding quarter. The supermarket giant attributed this to an "uncertain external backdrop" affecting shopper confidence, including higher fuel prices potentially linked to Middle East conflict and challenging high street conditions for independent retailers.
Group sales for the period rose 1% to £16.8 billion, boosted by an 8.9% increase in online sales. Tesco also expanded its Aldi Price Match campaign and introduced new products. However, sales at its Booker wholesale division declined by 3.2%.
Despite the slower growth, Tesco maintained its profit expectations for the full financial year, with analysts anticipating a profit of £3.25 billion. The company's shares fell 2.4% in early trading following the announcement.