Sales slump hits Tesco recovery

Tesco is facing accusations that its £1bn recovery plan has stalled after revealing a fall in like-for-like sales in its latest interim report, with only online shopping shoring up the business.
Chief executive Philip Clarke claimed the turnaround was still on course, adding: “We have started the year on track, despite a continued difficult economic environment for consumers.”
Like-for-like sales, excluding petrol and VAT, dropped by 1% during the 13 weeks ending May 25. The performance is a reversal from the 0.5% increase in UK sales in the three months to the end of February.
Tesco says that online food shopping is the fastest growing part of its business, and the retailer now has 169 grocery collection points across its UK stores.
Clarke added: “Our plan is a long term project.We’re not helped by the huge changes we’re making to general merchandise, which is all about changing the space and the ranges for the future.”
But Clive Black, an analyst at Shore Capital, told the Financial Times: “We harbour some growing concerns about the robustness of our UK forecasts given the weaker than anticipated trading momentum.”

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