Tesco sales growth slows amid ‘uncertainty’ linked to Iran conflict
Tesco held its profit outlook as online sales rose 10.9%, but chief executive Ken Murphy said Middle East conflict has unsettled customers.
- Tesco reported total sales increased 1% to £16.8 billion over the 13 weeks ending May 30, marking modest growth despite Middle East uncertainty affecting consumer spending.
- Ken Murphy, Tesco chief executive, attributed the slowdown to Middle East conflict uncertainty affecting households. UK like-for-like sales rose only 1.8%, below the 2.3% analyst forecast and prior quarter's 3.1% growth.
- Food sales rose 2.6%, with 3.6% growth for Fresh food and a 9% jump across the Finest range. Online sales surged 10.9%, offsetting weakness in UK like-for-like performance.
- Tesco maintained its full-year operating profit guidance of £3 billion to £3.3 billion, aligning with analyst expectations of £3.25 billion for 2026/27.
- Irish operations delivered the strongest performance, with like-for-like sales climbing 3.3% to £838m in the Republic of Ireland, driven by robust Food category growth.
26 Articles
26 Articles
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Tesco sales growth slows, but online demand remains strong - InternetRetailing
Tesco reported steady but slower sales growth in its first-quarter results, as the UK’s largest grocer faced weaker consumer confidence and tough comparisons with last year. The results follow CEO Keith Murphy’s warning in April that the war in the Middle East might impact on its performance. Group sales reached £16.8bn in the 13 weeks to 30 May, up 1%, while like-for-like sales in the UK rose 1.8% to £13.4bn. The performance was below market ex…
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A washout spring has done more damage to Britain’s supermarket tills than any World Cup win, according to the boss of Tesco, after the country’s biggest retailer saw UK sales growth more than halve over a quarter blighted by rain and the fallout from the Middle East conflict. Ken Murphy, chief executive of Tesco, said the grey, wet conditions that dominated much of this spring, set against a long run of sunshine a year earlier, had weighed on sh…
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