Tesco published its interim results on 8 October, covering the six months to 29 August 2026. The figures show a decline in sales for Booker, reflecting the impact of lapping strong growth in the prior year and the continued decline of the tobacco market. However, a slight increase in operating profit was achieved via better buying terms and strong execution of Tesco’s ‘Save to Invest’ cost-efficiency programme, effectively offsetting the drop in overall sales volumes.
Sales Decline and Tobacco Impact
Booker’s total sales excluding tobacco were down 1.4%, while tobacco sales dropped 8.9% to £740m. Traditional tobacco sales have been steadily declining due to regulatory changes, tax increases, and shifting consumer preferences toward vaping or quitting, while non-tobacco grocery categories continue to grow.
That trend is reflected throughout the sector, with Tesco’s total convenience like-for-like sales (including One Stop stores) declining by 1.7% in the first half of fiscal year 2026, driven primarily by the continuing contraction in the tobacco market. On a two-year basis, however, Booker, excluding tobacco, was up 2.7%.
Symbol Brands and Store Expansion
Booker’s symbol brands, including Premier, Londis, Budgens, and Family Shopper, continued to deliver strong performance, supported by the addition of 275 net new retail partners during the period. Despite lower overall volume, Tesco said the results demonstrate that Booker successfully managed its sales mix and operational costs to maintain a stable profit contribution to the Tesco Group.
Tesco Express sales were broadly flat year-on-year, with performance supported by a 1.4 percentage points contribution from net new store openings.
