Tesco has reported that group sales have grown 11.7 per cent during the third quarter of 2008, driven by international growth, with UK like-for-like sales slowing to just 2 per cent growth (excluding petrol) – its lowest point since 1994.
The domestic result is a result of the popularity of the group's Discounter range of products, introduced to offer consumers low-priced alternatives during the current economic crisis.
The move, which has deflated Tesco's sales by 2 per cent-3 per cent during the quarter, has been a major factor is attracting 300,000 additional customers to the retailer in the UK, it said.
'Tesco has maintained solid progress in sales and profits during thethird quarter across the group,' said CEO Terry Leahy. 'We are pleasedwith our progress but we are also realistic – the current economicclimate, and the strain that this is putting on consumers everywhere,is something that all businesses are feeling, including ours.'
International sales increased 28.1 per cent at actual exchange rates, the group said, with a strong performance in Asia (sales up 29.4 per cent) driven by the acquisition of Homever.
Sales throughout the group's European markets increased by 6 per cent, aided by favourable exchange rate movements, while the performance of Fresh & Easy in the US continues to be 'pleasing', Tesco said.
'We are adjusting the business to meet new challenges - focusing on becoming even cheaper for our customers, keeping our costs low to help us do this and managing our balance sheet and cash carefully,' Mr Leahy added. 'As we apply all the resources of the group to these priorities, I remain confident that Tesco can maintain a strong business performance and pursue its long term strategy even in tough times.'
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