Tesco has reported like-for-like sales growth of 2.8% in the three months to 28 November 2009.
The result fell slightly short of average analysts’ forecasts of 3% and triggered a 2% (8.9p) drop in the group’s share price to 426.75p
The figure also represented a slowdown from the 3.1% growth Tesco recorded in the second quarter as falling food price inflation took its toll.
Net new stores contributed 2.9%, bringing total growth excluding petrol to 5.7%.
Sir Terry Leahy (pictured), chief executive of Tesco, remained upbeat as Tesco gears up for the crucial Christmas trading period.
He said: “We’ve continued to make good progress this quarter with contributions to growth from across the business. We are seeing improving customer confidence and encouraging trends in both the UK and our international businesses, although recessionary conditions still exist in a number of markets.
“As ever, with Christmas approaching, we’re doing even more for customers with low prices, great promotions, including on our Finest range, and of course double Clubcard points. Our investment in growth – in new space and from the two acquisitions last year – is providing us with good momentum and a strong platform for the future.”
Leahy said the business was performing in line with expectations and the outlook for the year as a whole remained unchanged.
He said that sales growth of non-food items such as clothes had continued to accelerate with toys, electricals and entertainment selling well.
