Tesco, Britain’s largest supermarket chain, has posted strong first-quarter results, with underlying sales rising and market share increasing across both the UK and Ireland. The retailer attributed the growth to improvements in value, product quality, and service that are resonating with cost-conscious shoppers.
In the 13 weeks to May 24, Tesco’s UK like-for-like sales rose by 5.1%, up from 4.3% in the previous quarter. The company now holds 28% of Britain’s grocery market — its highest share since 2016.
Irish operations also delivered solid performance, with sales rising 5.5% to ÂŁ772 million. Tesco Ireland noted that this marked its 40th consecutive four-week period of market share gains, which now stands at 23.3%. The retailer said its Irish food sales increased by 5.8%, supported by strong volume growth and continued investment in fresh offerings. Ten products in its Irish fresh range won Monde Selection awards.
Tesco also reported robust growth in online shopping in Ireland, with sales up nearly 20% year-on-year. This was driven by the expansion of its same-day Click & Collect and home delivery services, as well as the launch of its rapid delivery service “Whoosh” in Dublin.
Tesco Ireland CEO Geoff Byrne said the company had “maintained strong momentum,” noting the growing popularity of Tesco’s own-label range and successful partnerships with local Irish suppliers. “Our commitment to delivering genuine value through Clubcard Prices and the Aldi Price Match programme is assuring customers that they need go no further in unlocking affordability,” he added.
Group-wide, Tesco’s total like-for-like sales rose 4.6% to £16.4 billion. CEO Ken Murphy highlighted consistent performance across all channels, saying: “Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group.”
However, Murphy also warned that the grocery sector “remains intensely competitive.” Tesco has already flagged that it expects adjusted operating profit to dip to between £2.7 billion and £3 billion in the current financial year, down from £3.13 billion last year. The group has set aside funds to respond to heightened price competition, notably from Asda, which recently pledged a series of price cuts to regain lost market share.
Despite the pressures, Tesco’s price-matching strategy with Aldi and its heavily promoted Clubcard loyalty scheme appear to be paying off. Analysts say the supermarket’s digital focus — including personalised customer engagement and its growing Marketplace platform — is helping to strengthen its position.
Shares in Tesco have risen 27% over the past year, defying broader retail trends that show weaker consumer spending on non-essential items in May.
