Supermarket giant Tesco shrugged off economic uncertainty and fiercer competition to post healthy first-quarter sales growth today.
Excluding petrol, Tesco grew UK like-for-like sales by 3.5% – in line with management forecasts and City estimates.
Chief executive Terry Leahy said: “Core food categories showed good growth as we helped customers spend less at a time when household budgets are becoming stretched.”
Terry said the company had made a “solid start” in the UK although non-food sales growth slowed as consumers took a more cautious approach to spending.
At the time of the retailer’s April annual results Tesco said same-store sales were running above 4%, although this eased back as the firm faced competition from the likes of Asda, Sainsbury’s and Morrisons.