Tesco sales growth slows amid 'uncertainty' linked to Iran conflict

Tesco posted a slower-than-expected sales improvement for the latest quarter as ongoing uncertainty surrounding the Middle East crisis weighed on consumer spending. The retailer reported total sales of 16.8 billion pounds for the 13 weeks to May 30, up 1% year over year. In the UK and Republic of Ireland, like-for-like (LFL) sales rose 1.8%, reflecting stronger food sales but a softer quarter versus the previous period. Food sales were up 2.6%, with fresh food climbing 3.6% and the Finest range delivering a 9% jump, underscoring Tesco’s mix of core groceries and premium offerings. Chief Executive Ken Murphy said he was pleased with early progress, noting improved customer satisfaction and ongoing sales growth. He cautioned that the Middle East conflict creates ongoing uncertainty for households, and Tesco stressed it remains focused on delivering a best-value combination of price, quality and service. The group maintained its full-year operating profit guidance of 3.0 to 3.3 billion pounds, a range that analysts will scrutinize in light of macro pressures and supply chain dynamics. Investors will watch closely for updates on costs, price investments, and store openings as Tesco outlines its medium-term strategy.