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

Tesco’s latest quarterly results show slower sales growth as the retailer faces ongoing uncertainty linked to the Middle East crisis. Over the 13 weeks to May 30, total sales rose just 1% to £16.8 billion, while UK and ROI like-for-like sales grew 1.8%. Food sales climbed 2.6%, with fresh food up 3.6% and the Finest range posting a 9% increase, underscoring Tesco’s continued strength in core categories. The company kept its annual profit guidance, expecting operating profits of between £3.0 billion and £3.3 billion. Chief Executive Ken Murphy praised progress, noting higher customer satisfaction and continued sales growth versus last year.

Murphy attributed part of the slowdown to the ongoing uncertainty caused by the Middle East conflict, noting that household sentiment remains cautious. He stressed Tesco’s strategy of delivering a compelling blend of price, quality and service as a buffer against macro headwinds. The update shows growth decelerating relative to the prior quarter, despite resilient performance in food and value ranges. Tesco’s UK and ROI operations continue to contribute the majority of earnings while maintaining balance between promotions and everyday essentials. The retailer remains focused on maintaining ranges and customer trust amid uncertain times.