Tesco remains strong during economic downturn

| June 16, 2009 | 0 Comments

Supermarket giant Tesco has posted a 4.3% rise in quarterly sales and said it has made a “solid” start to its financial year.

While the rise in sales was better than its 3.7% growth in the previous quarter, it was still lower than its major rivals.

Sales growth for the three month period to the end of May was behind that of fellow supermarket giant, Morrisons, which recently announced a 7.3% rise in quarterly sales.

Furthermore, last month Asda reported an 8.4% rise in quarterly like-for-like sales.

Sainsbury’s is expected to announce a 7.3% rise in like-for-like sales tomorrow.

However, Sir Terry Leahy, Tesco’s chief executive, said: “We’ve made a solid start to the financial year, maintaining good momentum in a challenging economic climate.”

The supermarket giant, which currently holds around 30% market share, employs approximately 470,000 people in more than 4,300 stores.

However, the chain is losing market share to rivals who are benefiting from cash-strapped shoppers buying discount brands.

Meanwhile, Tesco reported that sales growth in Asia was 43.8%, boosted by exchange rates, while sales were up by 174% in the US.


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