Tesco sales and market share climb in first quarter

Tesco’s core UK and Ireland business was the strongest performer during the period, which it said was “a reflection of its value proposition”. 

Like-for-like sales at Tesco’s UK&I division increased 4.7% to £15.3bn, with the UK business posting a 5.5% uplift, Ireland up 5.5% and Booker up 2%. Group sales grew 4.6% to £16.3bn. 

Tesco said it had advanced market share 44bps to 28%, with 24 consecutive four-week periods of share gains. “Improvements in quality and value perception” led to an uplift in its overall UK brand perception, up 65bps year on year. 

Food sales were boosted by fresh food, up 5.9%, warm weather and new ranges boosted home and clothing growth, and non-food sales grew 6.2%. 

While online, sales increased 11.5% and market share grew 163bps, which the retailer said followed increased capacity and improved customer satisfaction rates. 

Tesco chief executive 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. 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.”

Tesco held its operating profit guidance of between £2.7bn and £3.0bn for financial year 2025/26.