Tesco to look overseas for sales boost

Analysts think Tesco's sales growth from British stores open at least a year has lagged its rivals, partly because it sells more discretionary non-food goods, items where shoppers have cut back amid worries about rising taxes and unemployment.

Half-year results from electricals group Kesa and music and books retailer HMV, as well as a trading update from computer games firm Game Group next week, are likely to underscore tough conditions for UK non-food specialists, exacerbated by recent bad weather.

Some analysts are disappointed by Tesco's performance in Britain, particularly after several initiatives, such as the doubling of its Clubcard loyalty points last year.

"There is...some concern about the apparent lack of traction which Tesco has gained in its attempts to re-energise the sales performance of the UK business," UBS analysts said.

Tesco said in October it was seeing a robust recovery in many overseas markets.