Shares in Tesco soared at their fastest rate in 20 years yesterday despite the supermarket giant unveiling its worst quarterly sales performance in more than a decade.
Shares in the UK’s largest retailer rose by almost 13% yesterday to a new mark of 325.4p, despite Tesco announcing sales growth of just 2%, excluding petrol.
Finance director Andy Higginson said he expected a “very tough year” ahead but defended the supermarket’s focus on “discount brands” since introducing 350 new tertiary lines in September in a bid to position itself as ‘Britain’s biggest discounter’.
“We seem to have taken a different path [to competitors],” he told the Financial Times, conceding that Asda and Morrisons had won market share from the group.
Total sales, including fuel and new stores, rose by almost 6% in the three months to 22 November.
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