According to like-for-like sales figures (excluding new store openings, fuel and VAT), profits for the latest seasonal period were 2.3% lower than for the same period during the previous year.
Tesco have said that they expect only a small profit growth for 2012 as it intends to increase investment, especially within the UK.
In it’s statement Tesco also revealed that it’s spending on the promotional The Big Price Drop campaign had not proven successful.
“In a highly promotional market, the volume response to our increased investment into lowering prices did not offset the deflation it has driven,” Commented a spokesperson.
Tesco did report some positive developments, with online sales growth across both food and non-food items increasing by 14% in the UK and strong growth internationally. However, by large its performance has been dubbed by many to be extremely disappointing.
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