The country’s biggest retailer, Tesco has blamed the recent snow for its reduced sales over the Christmas period.
Tesco’s sales in Britain only rose by 0.8% in the six weeks up to January 8th, which is much lower than fierce rivals Sainsbury’s and M&S. who both sales their sales to increase over the same time period.
Tesco’s Chief Executive Terry Leahy said “Our performance remains solid but was hindered in the run up to the important Christmas trading period in the UK by the disruptive effects of the severe winter weather conditions,”
This is very much in contrast with main rival Sainsbury’s, who claimed to have served record amounts of customers in the seven days up and including Christmas Eve. Over 24.5 million people did their shopping there, despite the snow.
This resulted in the lowering of Tesco’s share price by 2.16%, making it the biggest faller in the FTSE index which itself was down 0.34 percent at 6,030.38 points in early deals.
This is a massive blow for Tesco, who are facing more and more pressure from Sainsbury’s as they prepare for a new Chief Executive. Leahy stated last year that he intends to end his 14 years at the helm in March. 14 years which has seen Tesco rise from a British supermarket into a global brand.
He will reportedly be replaced by Tesco’s head of European, Asian and IT operations, Phillip Clarke.