Tesco posts falling quarterly sales

AFP: British supermarket giant Tesco said yesterday that sales struggled in the third quarter of its financial year, as it continued to suffer from tough conditions at home and abroad.

Total sales including petrol, and at constant exchange rates, slid 1.2 percent in the 13 weeks to November 23, compared with the outcome in the same period last year, Tesco said in a statement. Sales excluding petrol rose 0.6 percent.

In the home market Britain, however, sales at stores open for at least one year and excluding VAT sales tax and petrol -- a key barometer for investors -- sank by 1.5 percent.

Total British sales including VAT and excluding petrol rose by 0.9 percent.

Tesco added that the thirdquarter performance was in line with weaker growth seen across the British market, where Tesco faces intense competition and where household budgets are under pressure.

“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,” said Chief Executive Philip Clarke in the statement.

He added, “Overseas, the nearterm trading environment also remains tough, most notably in Thailand, but we have been able to drive a better performance in Poland and Turkey.”