Tesco Makes UK Market Share Gains In First Quarter

Tesco has published a Q1 2025/26 trading update, noting increased customer satisfaction contributing to continued market share gains.

Sales performance (exc. VAT, exc. fuel) for the 13 weeks ended 24 May 2025:

Ken Murphy, Chief Executive:

"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. 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."

Performance highlights¹.

UK: Continued market share momentum and further improvement in customer satisfaction

• UK market share +44bps YoY to 28.0%2 with 24 consecutive four-week periods of share gains
  
  
• Overall UK brand perception +65bps YoY3; with further improvements in quality and value perception
  
  
• Maintained our strong price positioning relative to the market; Aldi Price Match on >600 lines, Low Everyday Prices on around 1,000 lines and around 9,000 Clubcard Prices deals each week
  
  
• Food sales up +5.9%, with a strong contribution from fresh food; non-food sales (excluding toys) up +6.2%4, with strong growth in home and clothing, benefiting from new and extended ranges as well as warmer weather
  
  
• Launched over 350 new products, including our new Finest Regional Italian range and enhancements to our Fire Pit barbecue range; awarded 40 Gold and Silver medals at the International Wine Competition
  
  
• Growth across all channels, led by Online, where sales were up +11.5% and market share up +163bps5 as we increased capacity and saw improving customer satisfaction
  
  
• Online launch of F&F in May, helping more customers access our range of stylish and affordable clothing
  
  
• Awarded first place in the Advantage supplier survey for the 10th year in a row

ROI: Market share growth and higher volumes, driven by food

• Continued growth in ROI market share, up +22bps to 23.3%6, delivering 40 consecutive four-week periods of share gains
  
  
• Food sales up +5.8%, with volume growth supported by continued investment in our fresh proposition; Irish fresh food range received 10 Monde Selection awards
  
  
• Growth across all channels, led by Online with sales up +19.8% which continues to benefit from the launch of same-day Click & Collect and home delivery last year

Booker: Strength in core catering and retail offsets tobacco market decline

• Core catering growth of +7.3%, supported by warmer weather and a strong Easter
  
  
• Core retail growth of +5.4%, driven by strong symbol brands performance
  
  
• Total Booker LFL growth of +2.0% impacted by the continued decline in tobacco and Best Food Logistics

Central Europe: LFL growth across all markets driven by strong food performance

• LFL growth across all regions, driven by a strong performance in food +4.4%

• Targeted price investments in the context of increased competitive pressure and new regulation in Hungary which introduces a margin cap on certain food products

• Fresh food sales up +7.3%, with strong contributions from produce, dairy and bakery categories; packaged sales up +1.6%

Guidance (unchanged versus Preliminary Results published on 10 April 2025).

We continue to expect Group adjusted operating profit of between £2.7bn and £3.0bn for FY 25/26 (FY 24/25: £3,128m), and free cash flow within our medium-term guidance range of £1.4bn to £1.8bn.

Since the commencement of our £1.45bn share buyback programme on 10 April 2025 and up until market close on 11 June 2025, we have bought back £448m worth of our ordinary shares. The balance will be completed by April 2026.

Source : Tesco PLC

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