Tesco Reports Solid Quarterly Sales

JANE WARDELL

LONDON (AP) — Tesco PLC, the world's third largest retailer, reported solid growth in quarterly sales on Tuesday with its international businesses making a strong contribution to the increase.

Tesco, which ranks behind U.S. Wal-Mart Stores Inc. and France's Carrefour SA, said same store sales, excluding fuel, rose 4.3 percent in the 13 weeks ending May 30, up from 3.7 percent in the previous quarter.

Group sales rose 9.7 percent, including fuel, with strong growth in international markets boosted by new stores, currency moves and the benefits of an acquisition in South Korea.

International sales rose 20.1 percent by actual exchange rates — 11.4 percent at constant exchange rates — led by a 43.8-percent gain in Asia. Sales in its fledgling U.S. venture rose 174 percent.

In its domestic U.K. market, where Tesco makes 70 percent of its revenue, sales were lower than the growth reported by other supermarket chains. While Tesco captures almost one in every three pounds spent in a British supermarket, rivals like Wal-Mart's Asda, J Sainsbury PLC and WM Morrison PLC have been gaining market share in recent years.