Tesco reported a fall in sales despite a massive half billion pound "Big Price Drop" program designed to stimulate demand.
The retail giant also warned that a further worsening of consumer spending could well be in the cards in the new year with Tesco FD Laurie McIlwee saying that consumers had been "cutting back all the way through this year," adding that it was not a great year for retailers.
Overall Tesco’s sales were up based on new stores and expansion of business including central Europe and the US. However the like-for-like stores in the UK saw sales decline fractionally, despite the pricing scheme.
McIlwee said that the "Big Price Drop" ought to be given a chance to see how it stimulated local demand, saying it would take months, not weeks, to make an impact.