Tesco holds guidance as Q1 sales rise, market share gained

(Sharecast News) - British supermarket chain Tesco on Friday held annual guidance after reporting a 4.6% jump in UK first-quarter sales as it won market share from its main rivals amid the cost-of-living crisis. UK retail sales on a like-for-like basis for the 13 weeks to May 25 came in at £11.3bn as the company said its UK market share had grown 52 basis points to 27.6%.

Tesco still expects retail adjusted operating profit of £2.8bn for the current fiscal year, up from the £2.76bn it reported in 2023/24.

Group sales were up 3.4% to £15.3bn, driven by strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation.

"We continue to be the cheapest full-line grocer and are the most competitive we've ever been, with our value, product quality and service driving better brand perception and customer satisfaction," said chief executive Ken Murphy.

"Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets."

Reporting by Frank Prenesti for Sharecast.com