Tesco calls Christmas sales period 'disappointing'

Thursday, 12 January 2012 08:34

Tesco has branded its sales over the Christmas period "disappointing" after unveiling its figures for the six weeks to January 2012.

The supermarket reported that group sales had increased by 5.2 per cent including petrol, or four per cent excluding fuel.

However, like-for-like sales growth could only reach 1.3 per cent, which was below expectations given that the UK was not gripped by snow and ice as it had been during the festive season in 2010.

Clothing and electrical recorded growth, while online sales increased by more than 14 per cent, with almost a million orders placed on Tesco Direct.

Chief executive Philip Clarke said the response to the investment in decreasing prices (in particular the Big Price Drop) had not offset the deflation it caused.

"Despite record sales, we are disappointed with our seasonal trading performance in the UK ... we are determined to move faster," he added.

Mr Clarke expects group trading profit to be "around the low end of the current consensus range" for 2011/12.

This comes after Nielson said last week that Tesco had recorded the lowest sales growth of any of the big supermarkets in the four weeks to December 24th.

In contrast, Sainsbury's like-for-like sales increased by 4.8 per cent in the 14 weeks to January and announced its best-ever Christmas trading.

Meanwhile, Morrisons said its own like-for-like sales excluding VAT and fuel had been 0.7 per cent in the six weeks to January 1st.

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