Tesco, Britain’s biggest supermarket, has announced a marked slowdown in sales growth for the first quarter of its financial year, citing the impact of the conflict in the Middle East on consumer sentiment.
Comparable sales for the 13 weeks ending May 30 rose by 1.8% to reach £13.4 billion, a sharp decline from the 4.2% growth recorded in the previous quarter. The results also missed the expectations of City analysts, who had anticipated a more robust increase of 2.3%.
Market Reaction and Consumer Outlook
The company highlighted that the ongoing geopolitical tensions have created persistent uncertainty for households, contributing to the softer performance. Consequently, Tesco shares experienced downward pressure during early morning trading following the announcement.
Source: The Guardian