Tesco to report sales slowdown
Sunday 04 October 2009
Tesco, Britain's biggest retailer, will report half-year profit figures this week under a cloud of warnings over falling food prices which analysts say will hit profits at food supermarkets over the next year.
The giant supermarkets group is expected to disclose that second-quarter sales to August grew at around 3.4 per cent in stores open at least a year, down from 4.3 per cent in the first quarter. Analysts say a combination of falling food price inflation and more careful shopping by customers is responsible, but pre-tax profit for the period is around £1.5bn – similar to last year.
Tesco shares fell 5p to 388p on Friday after Citigroup's decision to tell its clients to sell all three of the big UK food retailers, including Sainsbury's and Wm Morrison, on the grounds that food prices are falling sharply. Citigroup analyst Alastair Johnston warned that investing in supermarkets was "too risky" because food price deflation will hit sales and margins more than anyone anticipated. In August, food prices fell 1.2 per cent below May's level, and are set to slip even more in September.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...