URGENT UPDATE: Tesco has just announced its highest market share in over a decade, powered by a strong surge in festive sales despite fierce competition from rivals. The UK’s largest supermarket chain reported a 3.3% increase in like-for-like sales across the UK and Ireland for the six weeks ending January 3, 2024. This includes a 3.2% rise in the UK and an impressive 3.8% growth in Ireland.
The grocery giant’s third quarter sales, leading up to the Christmas holiday, also displayed robust performance, with a 4% increase in the 13 weeks to November 22. This surge has propelled Tesco’s market share to 28.7% during the three months to December 28, climbing even higher to 29.4% in the crucial Christmas month, according to Worldpanel data.
These encouraging figures indicate that Tesco is on track to achieve annual profits at the upper end of their recently revised guidance, projected between £2.9 billion and £3.1 billion. However, it is noteworthy that the festive sales growth represents a slight deceleration from the 3.7% growth reported in the same period last year.
Chief Executive Ken Murphy stated, “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. Competition is as intense as ever, and we know value remains a priority for customers.”
In response to the escalating price war with discount retailers like Aldi, Tesco has revealed plans to reintroduce its iconic blue-and-white striped value logo, which was phased out in 2012. The company emphasized that this logo will serve as a symbol of value and will be central to a major marketing campaign aimed at showcasing competitive pricing on leading branded products.
As Tesco navigates this challenging landscape, the emphasis on value could resonate deeply with consumers who are increasingly budget-conscious. The supermarket’s latest strategies signal its commitment to maintaining a competitive edge while ensuring customer satisfaction remains a top priority.
This news is a significant development for both Tesco and the grocery retail sector, indicating a robust response to market pressures and shifting consumer preferences. As the competition heats up, all eyes will be on Tesco’s next moves in this dynamic market.
Stay tuned for more updates as this story develops.
