Tesco, which takes more than one in most ten pounds spent in British shops, said on Wednesday it made an operating profit of just one. 77 billion pounds in the 26 weeks to Aug 27 on the 7. 8 per cent rise in sales in order to 31. 8 billion, excluding VAT sales tax.
Analysts had forecast an operating profit around 1. 83 billion pounds and sales of thirty-one. 9 billion.
The figures compare favourably with larger international rivals Wal-Mart and Carrefour, as Tesco expands in fast-growing Asian markets like Thailand and reduces its losses in the usa.
However, Tesco said sales at British stores open on the year fell 0. 7 per cent year-on-year within the second quarter, excluding fuel and adjusted for VAT, carrying out a 0. 4 per cent drop in the very first.
Britons are suffering the biggest squeeze on disposable incomes for many years amid rising food and fuel prices, subdued wages growth along with a government austerity drive.
Tesco, which makes about two thirds of its profits in Britain, is suffering more than rival grocers since it sells a higher proportion of discretionary goods where shoppers are reducing most.
Source : India Times