Tesco Triumphs with Record Christmas Sales and Market Growth

Tesco, the UK's largest supermarket, maintained its profit forecast after reporting a 4.1% increase in UK sales over the Christmas period, gaining market share. CEO Ken Murphy credits product improvements and enhanced customer service for the growth. Tesco also benefits from price matching and loyalty schemes.

Tesco, the leading supermarket chain in the United Kingdom, has upheld its full-year profit forecast following a 4.1% increase in underlying UK sales during the crucial Christmas trading period, further broadening its market share against competitors.

Under CEO Ken Murphy's leadership, the retailer has seen positive outcomes from strategies centered on refining product value and quality, fostering innovation, and boosting customer service. Tesco concluded 2024 with a 28.5% share in the UK grocery market, a significant rise from the previous year and its peak since January 2016.

Despite a 23% rise in shares over the last year, Tesco anticipates rising costs in 2025/26 due to new government-imposed social security payments and increased minimum wage requirements. Through efficiency savings, it plans to finance price matching with Aldi and its popular Clubcard loyalty program.

(With inputs from agencies.)