Tesco and Marks & Spencer both saw strong sales over Christmas
Tesco and Marks & Spencer both saw strong trading over Christmas as higher prices boosted their sales.The UK's largest supermarket said there had been strong demand for its budget items though shoppers had also been treating themselves to Tesco's Finest range.While Tesco reported a rise in sales for the 19 weeks to 7 January, growth was driven by the pace of rising prices - or inflation - rather than people buying more items.
The retailer said this growth included "particular strength" in fresh food, with 8.1% growth, as shoppers continued to spend on essentials. Looking ahead Mr Murphy said Tesco hoped that inflation would peak towards the middle of the year. "We think and hope we will start to see inflation come off in the second half of the year," he said.
The retailer, which is seen as a bellwether of the UK High Street, saw clothing and home comparable store sales rise by almost 9%.
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