Tesco's First Quarter Significant Sales Boost and Market Share Gain
Accelerated Sales Expansion in First Quarter for Tesco's Operations in Ireland and the UK
In a pulsating update, Tesco announced a remarkable surge in underlying sales growth and market share gain in the first quarter of the year, outperforming competitors as improvements in value, product quality, and service resonated with consumers.
The retail giant, with a 28% share of Britain's grocery market — reaching levels not seen since 2016 — shared today that UK like-for-like sales increased by 5.1% in the 13 weeks ending May 24, following a 4.3% growth in the previous quarter.
Meanwhile, Irish sales rose a vigorous 5.5% to £772m, with Tesco noting continuous growth in market share, now standing at 23.3%, marking 40 consecutive four-week periods of share gains.
Tesco's Irish food sales shot up by 5.8%, with growth in volume sales supported by continued investment in its fresh proposition. Its Irish fresh food range received no less than 10 Monde Selection awards, the retailer added.
The company witnessed growth across all channels in Ireland, anchored by online sales, which surged 19.8% due to the launch of same-day Click & Collect and home delivery last year.
Geoff Byrne, CEO of Tesco Ireland, stated that the firm had maintained strong momentum in the market, resulting in additional growth in the first quarter.
"Our award-winning own label products continue to soar in popularity, while our partnerships with local Irish suppliers ensure customers have access to top-notch products," Mr. Byrne declared.
"Our commitment to providing genuine value through Clubcard Prices and Aldi Price Match assures customers they don't need to look elsewhere for affordability," he observed.
He further noted that online shopping remains a robust growth area for Tesco Ireland, while the debut of its innovative on-demand rapid delivery service, Whoosh, has received a warm welcome in Dublin since its launch in March, with average delivery amounts similar to in-store basket shops.
Tesco announced its group sales at £16.4 billion, a 4.6% increase on a like-for-like basis.
"Our steadfast commitment to delivering quality, value, and service for our customers has contributed to like-for-like sales growth across all parts of the group," CEO Ken Murphy said.
However, he warned that the market remains fiercely competitive.
Tesco anticipates reporting an adjusted operating profit between £2.7 billion and £3 billion in the year ending February 2026, slipping from the £3.13 billion achieved in 2024/25.
In April, the group predicted that profit would decline in its 2025/26 year as it prepared for a ramp-up in competition in the UK grocery market.
This statement hints at a commitment from Asda, Britain's third-largest supermarket group, which has been grappling with market share loss, to maintain sustained price cuts.
Most analysts believe that Tesco's pricing and loyalty scheme strategies are proving effective, with strong performance in clothing sales under the F&F brand, improved non-food sales, and substantial growth in online sales providing valuable contributions to overall performance.
Tesco's shares have climbed 27% over the last year. The retailer's update contrasted with broader industry data published earlier this week, which indicated that British consumer spending on non-food items lost steam in May as households' confidence in their financial standing took a dip.
In the competitive landscape of the retail industry, Tesco's finance sector saw a significant boost from increased underlying sales growth and market share gains, particularly in the UK and Ireland. The retail giant's success is attributed to improvements in value, product quality, and service offerings, coupled with a robust online sales strategy and partnerships with local suppliers.
