Tesco will reveal its worst sales figures since the early 90s as the recession begins to hit business, it has been claimed.
According to analysts, the retailer will tomorrow post third quarter like-for-like sales growth of 1.9%, its worst performance since 1992.
They added that Tesco’s introduction of discount brands is likely to depress its results for the period.
Sir Terry Leahy’s supermarket is likely to have been given a knock by rivals such as Aldi and Lidl, as consumers trade downwards in the recession, experts said.
Industry figures from TNS and Empathy Research have suggested in the last month that discount retailing is becoming more popular among consumers.
Merrill Lynch said this discounting move could be good for Tesco in the long term.
The financial firm said: “Whilst their introduction may drag [on performance in the] near term and requires focused marketing, for the growing breed of price-sensitive consumers, Tesco has given itself the tools to fight the discounters.”
Last week, Tesco said it would be passing on the government’s VAT cut early to consumers.
In October the company denied planning for weaker sales growth in the next couple of months.
Tesco is set to reveal the figures tomorrow (2 December).
