Tesco reported that the conflict in the Middle East has impacted consumer sentiment, though it has not yet led to higher prices or a material change in shopper behaviour. Total sales rose 1% to £16.8 billion in the 13 weeks to May 30, with UK and Republic of Ireland like-for-like sales up 1.8%, a slowdown from the prior quarter. Food sales grew 2.6%, driven by a 3.6% increase in fresh food and a 9% jump in the Finest range. The retailer maintained its full-year operating profit guidance of £3 billion to £3.3 billion, while noting that food inflation in the quarter was below the 2.2% reported by the Office for National Statistics.
Tesco PLCMiddle East conflict noted as impacting consumer sentiment but not prices or behavior materially