Tesco has recorded its “biggest ever Christmas”, with the UK’s largest supermarket chain landing its biggest share of the festive shopping trolley since 2016.
The grocer on Thursday (9) revealed that sales at established UK stores rose 4 per cent in the six weeks to 4 January, with fresh food performing particularly strongly and clothing and homeware sales also up.
Tesco now controls 28.5 per cent of the grocery market and gained share from premium and discounter rivals over the 12 weeks to 29 December, according to the analysts Kantar.
Tesco added that Booker saw a core retail growth of +1.3 per cent as its symbol brands continue to perform well despite a subdued market backdrop. Overall Booker performance reflects continued decline in the tobacco market.
Ken Murphy, Tesco’s Chief Executive, expressed pride in the team's efforts during the Christmas period, highlighting the retailer’s focus on delivering value, quality, and service to all customers, regardless of how they chose to shop.
Murphy noted that Tesco has maintained its position as the UK’s cheapest full-line grocer for over two years while improving product quality across its ranges.
The festive success was supported by an additional 28,000 colleagues, helping to provide exceptional in-store and online experiences for customers. Murphy also extended his gratitude to the entire Tesco team for their hard work and dedication.
Looking ahead to 2025, Tesco remains focused on continuing to offer top-quality products and outstanding shopping experiences to its customers.
Sofie Willmott, Associate Retail Director at GlobalData, offers her view, “Tesco has reported higher sales growth than Aldi over Christmas evidencing how the market leader’s focus on product and service innovation, as well as value for money, has paid off, strengthening its position in the market.
"Despite Aldi opening stores throughout 2024, including 11 new stores in November and December, which will have driven total growth of 3.4% (for the four weeks to 24 December 2024), Tesco achieved better like-for-like growth (for the six weeks to 4 January 2025) of 4.1%, up against strong comparatives.
Tesco continues to outperform the UK food and grocery market constantly improving its proposition to meet shoppers’ needs in whichever way it can, for example, through its online marketplace which launched in June and roll out of Whoosh rapid delivery to more stores.
“UK food sales rose 4.7 per cent driven by volume growth, with sales being particularly strong in fresh food and its Finest range seeing impressive growth of 15.5 per cent as shoppers treated themselves over the festive period.
Willmott added that Tesco is standing out amongst its peers currently, but it must continue evolving in its focus areas, such as product innovation, online and showcasing value, to maintain momentum.
