Tesco's sales grow by 13.7%

UK's biggest retailer reported that sales growth had slowed over the past three months, particularly in big-ticket items such as furniture, as customers tighten their belts.

 With UK like-for-like sales excluding
petrol growing by 3.5% in the 13 weeks to May 24, Britain's largest
supermarket chain saw some signs of shoppers cutting back on
expensive goods – but said it was confident about its prospects.
Analysts had expected sales to rise 4% over the quarter after growing
by more than that in the five weeks to the end of March.
Non-food growing less than food for the
first time in a long time". Non-food products make up between
20% and 25% of Tesco sales.
Tesco said food price inflation is
about 3%-4%, similar to last year, even though prices for dairy and
bread have risen more sharply. Overall inflation at its stores is
about 2%.
Tesco saw international sales growth of
26.6%, helped by a strong euro. Overall group sales were 13.7% ahead.