Decreasing growth tempo at Tesco

The group today announced a shock downturn in UK sales growth as slowing non-food revenues held back continuing strong demand for food. That sent Tesco shares tumbling by 3%.

The group reported UK like-forlike sales grew 4.7% in the 13
weeks to 26 May. That compares with 5.8% growth from January to March and 5.6%
growth in the pre-Christmas trading quarter.

Group sales grew 10%, with 8% growth in the UK bolstered by
a 24.6% jump from international businesses, which benefited from the first-time
inclusion of its China venture. International growth is likely to continue to
be strong when Tesco steps into the US with its first store openings.