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Tesco names new UK boss as Christmas sales rise

Tesco expects tough conditions in Europe to continue
Tesco expects tough conditions in Europe to continue

Tesco, the world's third largest retailer, named a new British leader as it showed signs of a revival in its home market with a rise in underlying Christmas sales.

Tesco said it had appointed Chris Bush as managing director of the British business, which contributes about two thirds of group trading profit.

Bush is currently chief operating officer in Britain.

Group chief executive Philip Clarke had taken direct control of the British business in March after Richard Brasher departed.

Tesco said sales at British stores open over a year, excluding fuel and VAT sales tax, were up 1.8% in the six weeks to January 5, part of its fiscal fourth quarter.

That compares with analysts' forecasts in a range of up 0.5-1.5% and a third quarter fall of 0.6%.

The firm benefited from easy comparative numbers and the impact of its £1 billion sterling investment plan. 

In the same six week period of Tesco's last financial year like-for-like sales had fallen 2.3%, prompting the firm's first profit warning in 20 years and a strategic re-think.

Tesco said group sales rose 3.9% excluding petrol. It said its full-year outlook for Britain was unchanged and it expected tough conditions for consumers in Central Europe to persist.

The supermarket chain said that total international sales growth was 3.4% but European sales declined by 0.6%.

Meanwhile, the new Tesco Metro store in Terenure in Dublin was officially opened today, creating 34 jobs in the local area.

The company said it now employs over 2,350 in the Dublin City area.