Tesco’s growth spurt continues

BRITAIn’S largest grocer is expected to report further sales growth in the first quarter of its financial year this week.

Analysts at Bernstein have tipped Tesco to report a 2.2pc rise in like-for-like sales, up from 0.7pc in the previous quarter.

This will provide another boon for investors after Tesco reported its first full-year of growth since 2009 in April.

James Grzinic, analyst at broker Jefferies, said: ‘Tesco’s first quarter sales update could provide some relief, with inflationary support driving improved UK like-for-likes.’

While rising inflation can help grocers boost sales and profit margins it also risks driving customers to rivals such as Aldi and Lidl.

Tesco will also hold its AGM on Friday, where chief executive Dave Lewis is likely to face scrutiny over his pay package. Pensions and Investment Research Consultants advised investors to oppose Lewis’s pay after he received £142,000 to move from London to Hertfordshire, on top of a £4.1m pay packet.