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Tesco sales rise
Sales hold up but retailing remains tough |
The UK's biggest supermarket chain, Tesco, has announced an increase in sales in the third quarter of its trading year.
As tough price-cutting battles continue to wage across the supermarket sector, Tesco said sales in the UK for the 14 weeks to 20 November had increased by more than 7%.
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Tesco |
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Third-quarter sales up 7.3% |
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Like-for-like sales up 4% |
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Total sales - including overseas - up 10% |
The figures come a week after Sainsbury's reported a 29% fall in half-year profits.
Tesco said it was continuing to outperform the industry and win an increasing slice of the market from its competitors.
The group also gave an update of its internet shopping business, which has recently added books, gifts, products for the home and personal finance items to its catalogue, alongside groceries.
"By the year-end, Tesco will be the largest internet grocery business in the world," the supermarket claimed.
Tesco is to give its next trading update, covering the Christmas and New Year period, in January.
Shares slide
Tesco stock reversed earlier gains to post a mid-morning fall after what dealers described as a lacklustre set of figures.
By 1200 GMT, shares had fallen 4.25 pence to 170p.
Sales were said to be at the lower end of expectations. One leading food retail analyst said: "People were looking for 4.5% to 5% [like-for-like sales]."
"The reality is that life is very difficult for them and they are facing a tough trading environment."
Tesco, in common with its rivals, has found it difficult to prosper in a period of food price deflation.
Competition has been exacerbated by Wal-Mart's push into the UK with the purchase of Asda earlier this year.
While Tesco has increased its sales since then, others - notably Somerfield - have not, and sector analysts believe volumes have been driven higher at the expense of margins.
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22 Nov 99 | Business |
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Online shopping boom |
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18 Oct 99 | The Company File |
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Tesco to create 2,000 inner-city jobs |
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20 Sep 99 | The Company File |
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Sainsbury, Tesco shares tumble |
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11 Nov 99 | The Company File |
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Somerfield slims down |
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