Tesco growth slows

Tesco Plc, Britain's biggest retailer, said U.K. sales growth slowed in the third quarter as price cuts on clothing and alcoholic drinks failed to lure shoppers from Sainsbury and Asda stores. Sales at stores open at least a year rose 5.6 percent in the 13 weeks ended Nov. 25, down from a 6.6 percent pace in the second quarter.
Tesco has piled on market share in recent years, branching out of its traditional food business into more profitable clothing, household goods and financial services sectors as well as expanding internationally. Having pulled in customers with price cuts, it now accounts for almost one pound in every three spent in British supermarkets.
Yet, competition has toughened in recent months as grocery rivals Sainsbury and Marks & Spencer proved quicker at responding to shoppers shift away from price to better-quality and ethical produce.