Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Finance

Posted By Global Banking and Finance Review

Posted on January 24, 2025

Tesco's bumper Christmas puts it ahead of UK rivals

By James Davey

LONDON (Reuters) -Tesco, Britain's biggest supermarket group, kept its full-year profit outlook on Thursday as it reported a 4.1% rise in underlying UK sales for the key Christmas trading period, winning market share from rivals.

Under chief executive Ken Murphy the group is reaping the rewards of a programme to improve the value and quality of its products, step-up innovation and enhance its customer service.

"We delivered our biggest ever Christmas, with continued market share growth and switching gains," he said.

Industry data published on Tuesday showed Tesco ended 2024 with a UK grocery market share of 28.5%, up 80 basis points on the year and its highest level since January 2016.

Tesco, whose shares are up 23% over the last year, has benefited from a strategy of matching the prices of discounter Aldi on some products and the popularity of its Clubcard loyalty scheme, which provides lower prices for members. These programmes are being financed by efficiency savings, with 500 million pounds ($614 million) targeted for 2024/25.

The group is also continuing to benefit from the trend of consumers eating more at home rather than dining out, with sales of its 'Finest' premium range up 15.5% over the Christmas trading period.

Tesco said third quarter to Nov. 23 UK like-for-like sales rose 3.8% having been up 3.5% in its second quarter. Growth accelerated to 4.1% in the six weeks to Jan. 4.

The group said it still expected retail adjusted operating profit, its preferred profit measure, of "around 2.9 billion pounds" for its year to February 2025, up from the 2.76 billion pounds made in 2023/24.

Tesco does, however, face a jump in costs in its 2025/26 financial year due to increased social security payments imposed in the new Labour government's first budget last October, a hike in the national minimum wage and new packaging levies.

($1 = 0.8136 pounds)

(Reporting by James Davey; editing by Sarah Young)

Recommended for you

  • Trump says he may meet Ukraine's Zelenskiy next week

  • Trump says Nippon Steel will invest in US Steel, not buy it

  • Airbus postpones development of new hydrogen aircraft