Tesco reveals disappointing sales growth as Sainsbury’s hits targets

Tesco shares suffered their biggest drop in four years after the retailer announced disappointing growth in first-quarter sales.

 

Analysts had predicted sales growth of 5.2%, but the supermarket group, which accounts for about a third of the UK’s grocery market, saw sales increase by 4.7%.

 

The retailer said food sales had been strong for the first 13 weeks of 2007, but said non-food sales had been subdued.

 

Shares in Tesco fell by 4.9% following the announcement on Tuesday, the biggest fall since April 2003.

 

Sainsbury’s just reached its growth target of 5-6% as it said sales, excluding fuel, for its first quarter were up 5.1%.

 

However, shares in the supermarket increased by 0.6% on Wednesday following the announcement.

 

Despite the sales increase, chief executive Justin King remained cautious, describing the market as “competitive” as consumers continued to tighten their belts.

Upcoming webinar

SEPTEMBER
30

What does the future of farming look like post Covid-19 and Brexit?

Register today
See more