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Sales of Kindles and tablet computers helped boost revenue for Tesco electronics over Christmas, as the supermarket reported overall growth in general merchandising.
Tesco sells the Kindle six-inch 2GB e-reader for £89 and the Kindle Keyboard 3G for £149.
In the six weeks to January 7th 2012, the supermarket reported group sales increased by 4.0% excluding petrol. In the UK, Tesco total sales grew by 1.7% excluding petrol. However, UK like-for-like sales, which exclude the effects of new store openings, fell 2.3%, excluding fuel and VAT, in the six weeks to January 7th 2012. The company warned it expected "minimal" profit growth for the current year as it increases investment, especially in the UK.
The company said: “In general merchandise, clothing and electricals, we saw growth overall, with an improved performance in electronics in particular being driven by strong sales of tablet computers and e-readers.”
Online sales for the company in food and non-food achieved growth of more than 14%.
Tesco chief executive Philip Clarke said while the company made good progress internationally, it was “disappointed” with its seasonal trading performance in the UK.
The company added: “In a challenging consumer environment at home, and with early signs of more cautious behaviour emerging elsewhere, we have seen more strain than anticipated on our profitability during the important seasonal trading period.
“Our plan for 2012/13 now reflects substantially increased investment to deliver an even better shopping trip for customers—particularly in the UK.”