Tesco Q1 sales rise 4.6% despite ‘intensely competitive’ market
According to Tesco, growth was seen across all channels and led by online sales, where sales grew 11.5% and market share rose by +163bps
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Tesco has welcomed rising sales and a growing market share in Q1 despite an “intensely competitive” market, with group like-for-like sales up by 4.6% to £16.4bn over the period.
In the 13 weeks to 24 May, its UK market share grew by +44bps year-on-year to 28%, with 24 consecutive four-week periods of share gains.
It comes as food sales rose by 5.9% over the quarter, with a strong contribution from fresh food, while sales from its Finest range grew by 18%.
The group continued its Aldi Price Match investment over the period, and reported around 9,000 Clubcard Prices deals each week. It also introduced over 350 new own-brand products across the quarter.
Non-food sales (excluding toys) rose by 6.2%, bolstered by home and clothing sales, which benefited from new and extended ranges as well as the warmer weather over the period.
According to Tesco, growth was seen across all channels and led by online sales, where sales grew 11.5% and market share rose by +163bps as it increased capacity and saw improving customer satisfaction. In particular, sales were boosted by the online launch of F&F in May.
Looking ahead, the group expects adjusted operating profit to be between £2.7bn and £3.0bn for FY 25/26, up from £3.1bn the prior year.
CEO Ken Murphy said: “We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the group.
“In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation.”
He added: “We introduced over 350 new own-brand products across the quarter, including the launch of our exciting summer food range, and Finest is going from strength to strength, with sales up 18% year-on-year.
“The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco. I would like to thank every one of our colleagues for the contribution they are continuing to make to deliver the best possible shopping trip for our customers.”
