Commercial Property News

World No.3 retailer Tesco today reported Q1 sales for 13 weeks ended May 30th. up 8.2% (or 6.9% excluding petrol) from it's global operations comprising over 4,800 stores in 14 markets, whilst in the UK like for like sales including petrol showed an expected  3.8% increase, due to higher fuel prices, or just 0.1% when petrol and VAT are adjusted out, due to flat food prices and weak consumer demand.

Terry Leahy, CEO said:

"Tesco has made a solid start to the new financial year. We're making good progress with our strategy: investing in the shopping trip for customers; driving strong productivity gains; growing space and winning market share. The long-term global recovery is well underway although the pace and strength of economic recovery varies across our markets. We're in good shape and well-positioned to deliver further growth as the economic environment continues to improve."

J Sainsbury, Britain's third-biggest grocer, is expected to report Q1 underlying sales growth of 0.2% tomorrow,

Tesco, which makes more than two-thirds of sales and profits in Britain and is our number 1 grocer by some margin, said sales overseas rose 11.9% at actual exchange rates and excluding fuel. It's Asia sales were up 4.9% at constant exchange rates,  while in Europe, led by Ireland sales were up 4.3%, again at constant exchange rates. From a small base in the USA, sales were up 40.6% at constant exchange rates, as more customers flocked to the stores.

Last week, the group surprised investors with news chief executive Terry Leahy would retire early in March 2011, to be succeeded by head of Asia and mainland Europe, Philip Clarke.

Tesco shares have lagged the STOXX 600 European retail index by 5% this year. They closed yesterday at 391.65 pence, valuing the business at £32 billion.