The latest trading update from supermarket giant Tesco has confirmed a strong performance driven by fresh food and what it describes as a focus on value and quality.
Within its UK market, the company reported that it has maintained a strong market share at 27.5%, with net switching gains in December. Tesco claim that it is the only full-line grocer to increase market share vs pre-pandemic levels.
Aldi Price Match continued to provide “great value” on over 600 key products, say the supermarket and a new price lock announced at the start of January 2023 looks to hold the prices of over 1,000 everyday products through to Easter.
Tesco’s Finest festive range expanded by 22%, with overall Finest sales up 8.2%..
There was continued growth across large stores and convenience. Its online sales are also returning to growth within the period, with sales 59% higher than pre-pandemic and participation stabilising at around 13%.
Pleasing performance
Chief executive of Tesco plc, Ken Murphy, commented: “I’m really pleased with our performance over this period – particularly the further strong growth at Christmas on top of the exceptional growth of the last few years.
“We’ve delivered a strong market share performance in the UK and ROI, Booker has continued to grow strongly despite a particularly tough catering backdrop and our Central European business has delivered its highest sales growth for many years.”
Murphy went onto say that he was “extremely proud of the way Tesco has stepped forward to help customers dealing with tough times this Christmas.
“We go into the new calendar year with good momentum, and I am confident we can continue to maintain our competitiveness and deliver a strong performance relative to the market despite the challenging conditions ahead.”
Tesco reported retail adjusted operating profit is now estimated between £2.4 billion and £2.5 billion, with retail free cash flow of at least £1.8 billion.
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