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Tesco tipped to show 3 per cent rise in sales

Greg Walton
Sunday 06 December 2009 01:00 GMT
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Supermarket giant Tesco will update shareholders on Tuesday about its sales, which analysts expect to be 3 per cent up on the same period a year ago. Management at the retail giant will also discuss plans for the peak Christmas period when stores typically make up to 25 per cent of their annual profits.

Charles Stanley analyst Sam Hart said: "In the run-up to Christmas all food retailers do well as people are prepared to splash out. The revamped Clubcard scheme has boosted performance and will continue to for the next nine months."

Tesco stepped up its campaign to entice shoppers and surprised analysts by sending £67m of Clubcard vouchers to customers at the start of the month rather than in February when they are normally dispatched. Clubcard points were doubled in August, meaning the scheme's 15.4 million members have earned far more than in previous years.

Asda has promised customers savings of as much as £150m before Christmas. The Co-op has also entered the fray by tripling its dividend to members in time for the festive season, offering them discount vouchers for every pound they spend in store.

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