BRITAIN'S biggest supermarket chain has said sales growth is slowing as consumer demand becomes more subdued.

Tesco, which has stores in St Peter's, Worcester, and Warndon Villages, Worcester, said like-for-like sales in its 700-plus supermarkets for the three months to May 18, 2002, had grown 4.5 per cent.

This compares with a 4.9 per cent rise for the previous quarter, which included Christmas, and 6.4 per cent increase in the previous quarter, which included the post-September 11 period.

"I think we have seen from other retailers that there has been a slowing in the market - we highlighted that at our year-end," said Lucy Neville-Rolfe, Tesco's corporate affairs director.

She said the group, based in Cheshunt, Hertfordshire, was expecting to return to "more normal levels of growth".

Tesco's usual sales growth is three to four per cent.

"We have traded strongly and have strong volume growth, on top of strong volumes last year," she concluded.