The Wall Street Journal-20080116-Earnings Digest Brief -- Tesco PLC- Retailer-s Mixed Results Reflect Growing Caution
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Earnings Digest Brief -- Tesco PLC: Retailer's Mixed Results Reflect Growing Caution
Tesco PLC, the United Kingdom's largest retailer by sales, reported a mixed holiday performance, as slowing sales in its home market reflected shoppers' growing caution and tougher competition from rivals. Tesco's update was the latest in a series from U.K. retailers indicating a slowdown in consumer spending. Tesco Finance and Strategy Director Andrew Higginson yesterday called for a cut in U.K. interest rates. A half-point cut is needed, in line with the British Retail Consortium's view, Mr. Higginson said in an interview. The Bank of England cut rates to 5.5% from 5.75% in December but left them unchanged at the first Monetary Policy Committee meeting of this year. Tesco posted a 3.1% rise in U.K. comparable-store sales, or sales at stores open at least a year, excluding fuel, for the six weeks ended Jan. 5 compared with a year earlier.
