Tesco widens price war

June 15, 2001 Posted: 0723 GMT

LONDON (CNN) -- The UK's biggest grocer Tesco widened the nation's supermarket price war when it announced big price cuts from Monday.

Tesco (TSCO) announced its move as it revealed sales at its UK stores jumped almost 10 percent in the 12 weeks to May 19, with sales at stores open more than a year rising 6.7 percent.

The supermarket, which ranks ahead of Sainsbury [LSE: SBRY], Wal-Mart's (WMT: Research, Estimates) Asda and Safeway (SFW) among UK chains, has continued to build a lead in market share over its rivals.

Tesco announced on April 10 that its annual pretax profits rose above £1 billion ($1.4 billion) for the first time.

The company, which is continuing to build its international presence in continental Europe and Asia, said on Friday overseas sales jumped 50 percent as it opened more stores.

"Our constant focus on creating value for our customers continues on Monday when we launch a new round of price cuts," said Chief Executive Terry Leahy. He said Tesco will slash £60 million ($83 million) off prices.

Shares in Tesco, which announces half-year earnings on September 18, edged down 0.2 percent to 266 pence in London after the trading statement.

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