Retailer Tesco today reported a rise in overall first quarter sales, as a robust performance in Asia and central Europe offset weakness in its domestic market.
Total group sales rose 7.8% in the 13 weeks to May 28, Tesco said in an earnings update. British sales fell by 0.1% in the group's first quarter, although this was an improvement on the 0.7% decline in the final quarter of Tesco's last financial year.
In Europe, like-for-like sales growth slowed to 2% in the first quarter as gains in Turkey and central Europe were offset by a weaker trend in Ireland.
'Tesco has made a good start to the new financial year, despite consumer sentiment in many of our key markets remaining subdued,' chief executive Philip Clarke said in a statement.
'The overall performance of our businesses in Asia and Europe has again been pleasing, led by further strong growth in Thailand and across our Central European region,' he added.
'Uncertainties remain but with early, encouraging signs of better performance emerging in both the UK and the US, I am confident that this start will provide the platform for another year of growth and rising return on capital employed for Tesco,' Clarke added.
Tesco said own-brand foods were seeing good growth, with its Finest range up almost 10% on a like-for-like basis as hard-pressed consumers sought alternatives to dining out.
The Fresh & Easy business in the US reported 11.1% like-for-like sales growth as the company continues to attract new customers and a higher average spend.
