Tesco budgets for weaker sales growth

Deepening economic gloom has forced supermarket giant Tesco to scale back UK sales estimates, it emerged today.

The UK’s biggest retailer is internally budgeting for like-for-like sales growth of 2% in the UK – compared to its usual guidance of 3-4% – as the economy lurches towards recession.

The decision emerged following meetings between Tesco’s senior management and City analysts at Shore Capital.

Shore Capital’s Clive Black said: “Such budgeting is a significant change...and indicates the seriousness of the economic slowdown and its likely duration.”