Tesco sales stagnant

Tesco sales stagnantAccording to the revelation by Tesco the sales growth had come to a silent standstill in the UK in past three months to the end of May.

But despite the sales story in the UK, only 0.1 per cent remained bullish about the recovery.

According to Terry Leahy, the British clients still face uncertainties regarding the personal finances; and the group continues to seek evidence for a speedy consumer recovery.

Further he put blame on the current slowdown, which is trading between zero and 1 per cent growth, on account of low food inflation. Further the hike in the petrol prices meant customers spending shall be less on food now.

Freddie George, analyst at Seymour Pierce said that the UK sales has picked up very disappointingly as there isn't any relevant proof regarding the inflation embarking to pick up, as the competition has become intense.

Sales however are going flat at the Tesco's overseas stores, but the stretch had geared up the international sales by 11.9 per cent. The growth was just 5.3 per cent at the rates constant at exchange. The International growth was geared up by newly launched Asian stores, which brought home about 15.4 per cent growth.