Tesco warned of a slowdown in consumer spending and a 'subdued' non-food market, sparking fears of a retail slump and sending its shares down by nearly 5% to 434½p, the biggest drop in four years. The Independent. The Times. Daily Telegraph. Financial Times

Andrew Higginson, Tesco finance director, warned that it was going to be a tougher year because of growing consumer concerns following four successive interest rate hikes. 'A lot of the interest rate hikes have yet to work their way through,' he said.

International sales increased by 24.6%.