Published
January 9, 2025
Tesco was the latest retailer to issue a Christmas trading update on Thursday and after a successful season, Britain’s biggest supermarket group stuck with its full-year profit outlook as it reported a 4.1% rise in underlying UK sales for the key period.
That was in line with analysts’ expectations as it took market share from its rivals and cemented its dominant position in the sector.
The group’s UK share in the grocery market is 28.5% and it continues to expect retail adjusted operating profit of around £2.9 billion for the year to February.
The company issued figures for the third quarter (that is the 13 weeks up to 23 November) and for the Christmas period (the six weeks up to 4 January). In Q3 its UK and Republic of Ireland sales rose 2.8% while for Christmas they rose 3.7%. As mentioned, the UK operation rose 4.1% for the Christmas period specifically and 3.8% in Q3. Ireland was up 4.8% for Christmas and 4.2% in Q3.
Frustratingly, the company doesn’t share as much detail about its non-food performance as some of it supermarket rivals (like Sainsbury’s and Asda) do, but the owner of the F&F brand did say that over the Christmas period UK non-food sales excluding toys rose 4%. Tesco said it saw growth in both home and clothing. It didn’t specify how those two categories performed in the Republic of Ireland.
Supermarkets are an increasingly important destination for fashion shoppers, especially now they offer not only their own ranges but a number of third-party brands.
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