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

Tesco's growth slowed amid uncertainty linked to the Iran conflict, with total sales up only 1% to £16.8 billion for the 13 weeks to May 30. UK and Republic of Ireland like-for-like sales rose 1.8%, supported by a 2.6% rise in food sales and a 3.6% gain in fresh food. The Finest range jumped 9%, while the retailer kept its full-year operating profit guidance at £3.0-£3.3 billion. Chief executive Ken Murphy said customer satisfaction improved and trading momentum remained resilient amid geopolitical uncertainty.

Tesco signaled external tensions are weighing on household confidence, prompting a cautious but steady performance in core grocery categories. Management emphasized a continued focus on price, quality, and service to sustain growth as the market navigates inflation and changing shopping patterns. Investors will monitor currency, supply chains, and competition as Tesco executes its plan through the remainder of the year. Overall the update points to a cautious but stable trajectory for the retailer despite global tensions.