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Tesco sales growth falls in the UK

Tesco group sales have risen by 6.7% excluding petrol, but the sales in the UK fall behind with a de

Tesco's sales in the UK have dropped by 0.1% in the first three months of its financial year, while overseas sales have grown.

Group sales at Tesco have grown by 6.7% excluding petrol. The cause of this was led by international demand, as Thailand, China and Eastern Europe are amongst the highest countries in demand.

Market analysts predicted Tesco to grow by 0.6% in the UK, however the reality was much worse. Richard Hunter, head of UK equities at Hargreaves Landsown Stockbrokers said, "Tesco was always going to be swimming against the tide with this update."

Two-thirds of Tesco's profits come from the UK, and with the decline in growth the share price has dropped by 5p, leaving it as 402p.

Tesco has blamed the "cautious consumer environment" for the drop in sales, but said it still continued to do better than its rivals.