Like-for-like UK sales – which ignore new shop openings – excluding VAT and petrol were down 1.5%.
The announcement comes 18 months after boss Philip Clarke launched a £1bn turnaround plan for the company.
Tesco’s overseas businesses also saw a drop in sales. Sales declined by 5.1% in Asia, which Tesco said were driven by a worsening performance in Thailand and South Korea. In Europe, like-for-like sales were down 4%, and Tesco said sales in Ireland had been hit by “extremely challenging conditions for consumers”.
In October, Tesco reported a 23.5% drop in profits in the first half of its financial year.
In its latest trading update, Mr Clarke said that the decision to slow the opening of new retail space and work on revamping its general merchandise products was holding back sales in the short term.
Tesco said it had recently relaunched its “Finest” own brand and renovated 108 of its stores. It also said it was aiming to improve its online shopping experience by offering one-hour home delivery slots and setting up ‘click and collect’ drive-through locations.
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