Supermarket chain Tesco has announced that it sustained a drop in comparable sales across its global business in Q3.
The leading UK retailer’s like-for-like sales dropped by 1.5%, although group sales rose by 0.6% in the period leading up to 23 November. In addition, total UK sales were up by 0.9% according to Just Food.
Tesco’s major challenge lies in its overseas markets. Like-for-like sales fell 5.1% in Asia, while sales declined in Europe (excluding UK) by 1% at actual exchange rates and by 2.9% excluding currency fluctuations. Like-for-like sales declined by 4%.
Attributing the sales decline to lack of consumer spending power, Tesco CEO Philip Clarke commented: “Continuing pressures on UK household finances have made the grocery market more challenging for everyone since the summer and our third quarter performance reflects this”.
The company, however, insisted that a UK turnaround plan, involving a re-launch of its premium own brand “Finest” range, store refurbishments and multi channel focus, remained on-track.
Source: Just Food