Tesco like-for-like sales growth slowdown

Tesco has reported a slowdown in like-for-like sales growth in the three months ended 26 May to 4.7 percent, down from 5.8 percent the previous quarter. The results fell below analysts' expectations of 5 to 5.5 percent. As a result, shares in the supermarket giant dropped 2.8 percent. The group attributed the dip to "more subdued markets".

Despite the like-for-likes sales growth slowdown, chief executive Terry Leahy was upbeat about the first quarter results. "We've made a good start to the year across the group," he said in a statement. Sales rose 10 percent, driven by new store development and the integration of acquired stores. International growth was strong at 24.6 percent at constant exchange rates. Asia performed particularly well, with sales up 32 percent as the group consolidated its operations there. Meanwhile, the UK "made solid progress" with "good growth" in the core food categories and further improvement of its offering. The company last week announced £270 million in price cuts.