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Tesco lost out to supermarket giants over Christmas

February 10, 2009 by admin  
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One of the leading supermarkets in the UK has admitted that over the Christmas period it lost out to its rival supermarket giants, with the weakest sales growth in nearly two decades. In the run up to Christmas sales levels for Tesco only went up by around 2.5 percent, which was far less than its rival supermarkets.

An official from Tesco said that the sales figures for the Christmas and New Year period for the supermarket were amongst the lowest since the last recession in the early 1990s, but he also went on to state: ‘In a price sense we are very competitive in the market now… now we are happy with our position.’ He added that the supermarket chain is still looking to invest in new stores, and hopes to create around ten thousand jobs over the course of the this year.

With regards to sales figures in general for the Christmas and New Year period one official from the British Retail Consortium stated: ‘These are truly dreadful numbers. Overall the food sector was almost the only one to show growth. Non-food retailers had a torrid December despite a blizzard of promotions and deals, which would have hit margins. Many hard-pressed customers couldn’t be seduced into spending.’

Whilst the government had hoped that slashing the interest rate over recent months would help to boost consumers spending and revive the economy over the Christmas period, the recession and fears over job losses counteracted some of the benefit of the interest rate cuts with consumers still wary about spending even over the festive season.

Like many other retailers Tesco slashed many of its prices in the run up to Christmas in the hope of getting more customers through the doors and spending money.

Tags: supermarkets, year, British Retail Consortium, sales figures, torrid, tesco

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