Tesco has on Wednesday reported a mixed performance across its wholesale arm Booker during the key third quarter and Christmas trading period, with continued growth in core catering offset by pressure in retail and tobacco.
Like-for-like sales at Booker fell 1.3 per cent over the 19 weeks to 3 January, reflecting a 0.9 per cent decline in Q3 and a sharper 2.1 per cent drop over the Christmas period. Tesco said the performance was impacted by the ongoing decline in the tobacco market and the exit from a lower-margin national retail account in August.
Within Booker, core catering sales grew 2.4 per cent, supported by strong demand at specialist wine and spirits merchant Venus. Core retail sales slipped 0.4 per cent, including a c.200 basis point impact from the contract exit, although overall customer satisfaction improved year-on-year. Best Food Logistics delivered like-for-like growth of 0.6 per cent, despite continued weakness in parts of the fast-food market.
At group level, Tesco delivered a “strong Christmas”, with UK and Republic of Ireland like-for-like sales up 3.8 per cent over the combined Q3 and festive period. UK sales rose 3.2 per cent over Christmas, driven by gains in fresh food, online and rapid delivery through Whoosh, while ROI sales grew 3.8 per cent.
“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,” chief executive Ken Murphy said.
Murphy added that the competition remained intense, with value still a priority for shoppers, as he highlighted the recent expansion of its Everyday Low Prices commitment to more than 3,000 branded products.
Looking ahead, the group now expects to deliver FY25/26 adjusted operating profit at the upper end of its £2.9bn to £3.1bn guidance range, following the strong festive performance.