Tesco said today that its sales expectations remain unchanged, despite claims this week that it is budgeting for weaker sales growth.
On Wednesday, the Financial Times cited comments made by Tesco Finance director Andrew Higginson to the Shore Capital brokerage, saying Tesco is expecting UK sales growth of 2%.
But spokeswoman Nikki Martin said the supermarket giant has not altered its forecast for the yearly figures yet is concerned about the long-term impact of the economic troubles.
She said: “We have not changed what we’re looking at and have not even started our budget process yet.
“With the current uncertainty about the potential depth and longevity of a downturn, it is only prudent to consider and plan for any eventuality.”
Shore Capital analyst Clive Black told Reuters that Tesco will face a difficult period in the coming few years.
“It’s now about how they set their business up for the next year or two, which will be tougher times than usual,” he said.
Analysts this week slashed their profit forecasts for Marks & Spencer, and the retailer’s share price dropped dramatically.
