Tesco Sales slowling

Tesco PLC reported its worst U.K. sales performance since the 1990s and slashed its capital-expenditure plans in an effort to preserve cash, as the economic downturn continued to hit retailers hard.

 The United Kingdom's top retailer by
sales held up relatively well as the nation lurched toward recession,
though it said sales excluding fuel from stores open at least a year
rose just 2% in its third quarter ended Nov. 22. That compares with
4% growth in the fiscal second quarter and a 3.7% rise in the first
half.

Total sales rose 12 percent and gained
28 percent at foreign stores. That included a “particularly strong
performance” in Asia, where sales climbed 29 percent, while the
retailer recorded “strong growth” in all of its European markets.