Tesco has set a new profit guidance of £2.6b after a stronger than expected Christmas period, according to its latest trading report for the 19 weeks ended 8 January 2022.
It revealed the retailer has seen further growth on top of an “exceptional” performance last year, with shares sitting at the highest in four years, growing both in stores and online.
Tesco also said it has seen strong large store and convenience performance, with online sales remaining significantly ahead of pre-Covid levels.
Over 95% promotional sales are now on Clubcard Prices as 8.5 million customers are able to access Clubcard via app.
According to the retailer, sales are up strongly on a two-year basis, with one-year growth on top of an “exceptional” Christmas last year.
Tesco said it expects Bank operating profit to be between £160m and £200m, due to the effect of more favourable economic forecasts on its provision for expected credit losses.
Ken Murphy, chief executive, Tesco, said: “Despite growing cost pressures and supply chain challenges in the industry, we continued to invest to protect availability, doubled down on our commitment to deliver great value and offered our strongest ever festive range.
“This put us in a strong position to meet customers’ needs as, once again, COVID-19 led to a greater focus on celebrating at home. As a result, we outperformed the market, growing market share and strengthening our value position.”