Russ Mould, investment director at AJ Bell, said: “The market leading position enjoyed by Tesco in UK groceries looks unassailable but there was still enough in its latest update to cause the market some concern.
“Sales growth slowed markedly, to come in slightly below expectations.
“Wholesaler Booker remains something of a problem child thanks to a tougher catering market.
“Chief executive Ken Murphy delivered a dose of caution in his commentary on the outlook, and an expansion of its Aldi Price Match scheme could squeeze margins.
“Tesco will be among the droves of people waving the flag for the home nations in the World Cup, given the football tournament could provide a meaningful boost to trading.
“People will likely splash out on booze and food as they congregate to watch the games and the better England and Scotland do, the greater the potential benefit to Tesco’s sales.
“The Tesco boardroom will be as cheered as anyone by the winning start both teams have made to the tournament.
“While the share price may have endured a slight wobble today, Tesco is still a very well-oiled machine which should remain resilient even in a difficult economic environment.
“A weekly shop is a must for households and more of them are opting to do it at Tesco.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.