One of Tesco's most senior executives attacked City critics yesterday for taking a “Little Englander” attitude to the supermarket chain after it reported its slowest growth in Christmas sales in Britain for a decade.

Andrew Higginson, the finance director, reacted angrily to suggestions that the group may be losing its touch after lording it over the rest of the high street for much of the past ten years. “We are firing on all cylinders,” he said.

Tesco said that like-for-like sales in the UK had risen 3.1 per cent, excluding fuel, in the six weeks to January 5. Analysts had been expecting growth of as much as 4.5 per cent and shares in the group fell 13p to 407p in another dismal day for retail stocks. Debenhams plunged 17 per cent and Burberry dropped 16 per cent.

One trader said: “Tesco's like-for-like sales figure is a big miss and is significantly below the worst estimates.”

Mr Higginson insisted that Tesco would still meet profit targets for the current financial year and pointed to international sales growth of 26.9 per cent over the six-week period.

He added: “Group sales were up 12.8per cent, we took £7 billion in the six weeks. That's a big number and a big increase on a big number the year before.

“There is something of a Little Englander view on UK trading, but we have been building a broader platform for growth for the past ten years.”

Analysts said it seemed that Tesco had cut back on promotional activity, particularly on beers, wines and

spirits. Morrisons is believed to have increased sales by 10 per cent in December after big price cuts.

Sainsbury's achieved like-for-like sales growth of 3.7 per cent for the last three months of 2007 but refuses to split out its December figures. Mr Higginson said: “Morrison's had a good Christmas, but they were coming off a low base, a low two to three years.”

Tesco's non-food sales through Tesco.com and Tesco Direct in the UK rose by 24 per cent to £190 million. The group delivered more than two million orders over the six weeks.

Mr Higginson reiterated Tesco's support for a half-point cut in interest rates by the Bank of England. He said: “I think they overreacted in putting them up too often and too quickly and we have been saying they need to get these down and help consumers.”

Geoff Ruddell, a Morgan Stanley analyst, said: “When you have a company that accounts for one eighth of all retail spend, then it's hard to believe they won't be impacted by a slowdown. It's a testament to them that are still likely to hit their earnings targets.”

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