Tesco has announced its strongest market position in more than ten years, following a successful festive trading period where sales grew despite what it described as "intense" sector competition.
Festive Sales Growth and Market Share Surge
The UK's largest supermarket chain reported a 3.3% increase in like-for-like sales across its UK and Ireland operations for the crucial six weeks to 3 January. This was comprised of a 3.2% rise in the UK and a stronger 3.8% growth in Ireland.
This performance helped the group increase its overall market share to 28.7% in the three months to 28 December. Data from Worldpanel showed this figure surged even higher to 29.4% during the key Christmas trading month alone, marking its highest share of the grocery market in over a decade.
Profits on Track Amid Fierce Competition
The robust Christmas results mean Tesco is now confident its annual profits will land at the upper end of its recently-upgraded forecast, which sits between £2.9 billion and £3.1 billion.
However, the company noted that the growth rate represented a slight slowdown compared to the 3.7% increase reported for the same period the previous year. It attributed this to the fiercely competitive landscape, with all major players battling aggressively on price.
Leadership Focus on Value and Customer Satisfaction
Chief Executive Ken Murphy stated that the group's strategy was paying off. "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 said.
Murphy added, "Competition is as intense as ever and we know value remains a priority for customers." This focus on value was underscored earlier in the week when Tesco confirmed the return of its iconic blue-and-white striped value logo, which it had retired in 2012.
The company said the revived logo will symbolise value and be central to a major new marketing campaign, highlighting low prices on leading brands as it directly challenges discount rivals like Aldi.
