Supermarket giant Tesco today said severe winter weather hindered its Christmas trading performance as it posted modest 0.6% like-for-like sales growth.
The supermarket giant said the heavy snowfall and freezing temperatures particularly hit its non-food offering as customers were unable to travel to larger stores.
'Our performance remains solid but was hindered in the run-up to the important Christmas trading period in the UK by the disruptive effects of the severe winter weather conditions,' said chief executive Terry Leahy.
Tesco's total group sales increased by 7.6% but this was driven by growth overseas. In Asia, sales grew by 24.2%, with strong performances in Thailand and China, in Europe sales grew 5.6%, while in the US, the Fresh & Easy chain saw sales grow by 36.9%.
Tesco said that food sales grew 1.7% on a like-for-like basis over the festive period, whereas non-food sales, which include electrical goods, entertainment and clothing, declined 1.5%.
Within food, Tesco said that its customers were 'trading up' and buying the company's Finest range, with Finest party foods up 90% and Finest wines up 100%.
Tesco Direct, the company's website, saw sales increase by 18% with a strong performance in toys, gaming and small domestic appliances.
The update is in contrast to Tesco's fierce British rival Sainsbury's, which yesterday said it had enjoyed record Christmas sales, claiming that its shoppers had not been put off by last month's heavy snowfall across Britain.
Tesco is facing growing pressure from Sainsbury's as Britain's biggest retailer prepares for a new chief executive. Leahy last year said that he intends to retire in March after 14 years at the helm.
Leahy, who turned Tesco from a solid British food retailer into a global operation also selling electrical items, clothes and financial products, will be replaced by its head of Asian, European and IT operations, Philip Clarke.
