UK Supermarket Giant Blames Rate Hikes for Sales Slowdown

20 June 2007

LONDON: The UK's seemingly invincible supermarket chain, Tesco, says this year's interest rate rises and their effect on consumers have resulted in a slowdown in its sales growth.

The country's biggest retailer says its UK like-for-like sales growth slowed to 4.7%, down from 5.8% in the previous quarter. Group sales increased 10% in the 13 weeks to May 26 - boosted by a strong performance in Asia.

Andrew Higginson, Tesco finance director, says customers are thinking more carefully about purchasing non-food products: "Things have got a bit tougher with the interest rate rises, but we are still outperforming the market."

Data sourced from; additional content by WARC staff