Tesco expected to lag behind three big rivals
Saturday 10 January 2009
Tesco, the world's third-largest retailer, is expected to post its worst UK festive sales for a number of years on Tuesday, although many other big retail names are expected to unveil far worse figures next week.
City analysts expect the UK's biggest supermarket to post underlying sales, excluding fuel, up by 2.5 per cent for the 6 weeks to 3 January, which is likely to be substantially behind its big three rivals. On Thursday, Sainsbury's posted like-for-like sales, excluding fuel, up by 4.5 per cent – albeit for the longer trading period of 13 weeks.
Asda, which is owned by Wal-Mart, said it enjoyed one of its strongest Christmas trading seasons, but did not provide underlying sales, while Morrisons will update on 22 January.
If Tesco posts underlying sales of 2.5 cent on Tuesday, it will be its worst performance for at least four years. However, it only started posting like-for-like sales – excluding fuel – since late 2004.
City analysts cautioned that the grocer's underlying sales may be better than expected because some of its larger Tesco Extra hypermarkets were open for longer over the festive period. They also said that Tesco's launch of hundreds of discounter branded products in September may continue to dent its UK underlying sales and give it the lowest food price inflation among the big four.
Greg Lawless, the Blue Oar analyst, said: "We expect them to have underperformed [their big three rivals] because of the discount brands, but they are still in good shape. Morrisons was the real winner this Christmas."
According to Nielsen, Tesco and Sainsbury's grew their sales by 3.8 per cent, while Asda's rose by 6.7 per cent and Morrisons by 9.1 per cent for the 12 weeks to 27 December.
Next week, on what has been dubbed "Mad Thursday" for the retail sector, DSGi, Home Retail Group, HMV, Halfords and Carphone Warehouse update on Christmas trading. Among these, Credit Suisse expects DSGi's UK and Ireland electricals business, including Currys, to post underlying sales down by 15 per cent and a drop of 11 per cent at its UK computing arm, including PC World.
- 1 Why I'm on the brink of burning my Israeli passport
- 2 Israel-Gaza conflict: ‘Sderot cinema’ image shows Israelis with popcorn and chairs 'cheering as missiles strike Palestinian targets'
- 3 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
- 4 Iraq crisis: How Saudi Arabia helped Isis take over the north of the country
- 5 Barack Obama fist bumps Texas restaurant employee in support of gay rights
Scottish independence: Scots of Corby take matters into their own hands in mock referendum - and deliver overwhelming verdict
Protesters fight to save Arturo, the polar bear sweltering in baking hot zoo
Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Supermoon 2014 in pictures: Moon appeared bigger and brighter at the weekend
Saharan remains may be evidence of first race war, 13,000 years ago
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
Emergency data law: David Cameron plots to bring back snoopers’ charter
NUT strike: David Cameron announces crackdown on strike action ahead of mass industrial action
iJobs Money & Business
£35000 per annum: Harrington Starr: A world leading brokerage is looking for a...
£30000 per annum: Harrington Starr: My client, a researcher of investment idea...
£63000 per annum: Harrington Starr: A market leading provider of technology dr...
£55000 - £65000 per annum: Harrington Starr: A leading global exchange is look...