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Tesco ready to post more bleak figures as sales worsen

Supermarket giant Tesco is set to announce more disappointing sales figures next week, while maiden results are due from online retailer AO World.

Tesco boss Philip Clarke will come under renewed pressure on Wednesday when Britain's biggest supermarket is expected to post a worsening decline in sales.

Analysts expect like-for-like sales will be down 4.1% in the first quarter of the financial year, representing Tesco's weakest performance in years. It will be an acceleration on the 2.9% slide the retailer posted in the fourth quarter of the 2013/14 financial year.

Annual results published in April showed underlying pre-tax profits fell 6.9% to £3.05 billion for the year to February 22, the second decline in a row. Analysts expect a further deterioration for the current year.

Online appliances retailer AO World reports its maiden set of annual results as a listed company on Thursday following a period in which its share price has fallen steeply since it floated on the stock market in February.

AO World appears to have been hit by the dwindling investor appetite for newly-listed firms which recently saw over-50s focused holidays-to-insurance firm Saga come to the market at the bottom of its expected price range, while fashion retailer FatFace shelved float plans.

Shares in Bolton-based AO World were initially offered at 285p but have since fallen by as much as a quarter.

The site sells appliances such as washing machines, tumble dryers, dishwashers, fridges and cookers.

It has recently begun selling televisions in a bid to take advantage of this year's World Cup.

Investors will look to housebuilder Bellway to capitalise on the strong start it made in the first half of the year when it posts its third quarter trading statement on Thursday. At its interim results for the six months to January 31, it produced a 40% rise in sales to £701.1 million and a record first-half operating profit up 69.6% to £109.2m.

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