UK supermarket chain Tesco said it was seeing early indications of changing customer behaviour as a result of the cost-of-living crisis and inflationary environment as it reported a fall in first quarter sales, but maintained annual guidance.
The company on Friday said UK like-for-like sales for the three months to May 28 fell 1.5% to £9.8bn. On a group basis sales were up 2%, boosted by a strong performance at its Booker division, where revenue rose 19.4% to £2bn.
“At this early stage in the year, our guidance ranges for profit and cash remain unchanged,” the company said.
“Although difficult to separate from the significant impact of lapping last year’s lockdowns, we are seeing some early indications of changing customer behaviour as a result of the inflationary environment.”
