Banmoco News As It Happens

Tesco is expecting to have enjoyed better international success than it has enjoyed on its own shores.

Although it might undoubtedly be Britain’s biggest supermarket chain, Tesco expects that the majority of the good news from its third-quarter sales report, due on Wednesday, will have mostly stemmed from its international figures. A recent trip that saw the company’s analysts checking on the progress of Chinese and South Korean operations, the latter mentioned of which now work with the largest market outside Britain, demonstrated that business is going from strength to strength in Asia – a region that Tesco wishes to increase its influence in.

Jefferies International, one of the analysts used, believes that Tesco’s overseas sales for its third-quarter should have grown 13% and will also confirm that American like-for-like increases are still strong as limited progress is witnessed in Europe. On a domestic front however, the broker believes that the update should confirm UK trading momentum is still dragging its feet and is hampering the chances of growth.

Also asked to analyse the situation were Shore Capital, which also expects the third-quarter report to show that Tesco’s UK trading has been performing as well as it can do with a dull market that has resulted in reasonably muted like-for-like sales performances across all sectors.

However disparaging the upcoming results are however, the fourth-quarter should be a lot more positive due to sales made over the Christmas period as Britons by presents, food and other supplies.