UPDATE: Tesco has just announced a significant achievement as it records its highest market share in over a decade, driven by a surge in festive sales despite fierce competition. The UK’s largest supermarket chain reported a strong 3.3% rise in like-for-like sales across the UK and Ireland over the six weeks leading to January 3, 2023. This includes a robust 3.2% growth in the UK and an even more impressive 3.8% increase in Ireland.
The company also highlighted a 4% sales boost during the third quarter, covering the 13 weeks up to November 22. These results propelled Tesco’s market share to 28.7% in the three months ending December 28, peaking at 29.4% in December, according to Worldpanel data.
This festive sales performance positions Tesco for annual profits that could reach the upper end of its revised guidance, estimated between £2.9 billion and £3.1 billion. However, it is worth noting that this growth represents a slight decrease from the 3.7% increase reported during the same period last year, as intense competition continues to shape the grocery landscape.
Chief Executive Ken Murphy emphasized the importance of value, stating, “Our investments in value, quality, and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade.” He acknowledged the competitive pressures, noting that “value remains a priority for customers.”
In a bold move to combat competition, especially with German discounter Aldi, Tesco recently announced the revival of its blue-and-white striped value logo, which it had phased out in 2012. This logo is set to be central to a major marketing campaign aimed at showcasing low prices on leading branded products.
As Tesco continues to adapt to market challenges, the grocery giant’s ability to maintain customer loyalty through value and quality will be critical. With the holiday shopping season now behind them, all eyes will be on Tesco’s next steps as they navigate an increasingly price-sensitive environment.
Stay tuned for more updates on Tesco’s performance and strategies as they unfold.
