Tesco Plc (LON:TSCO) has announced its Q1 Trading Statement 2025/26.
INCREASED CUSTOMER SATISFACTION CONTRIBUTING TO CONTINUED MARKET SHARE GAINS.
Sales performance (exc. VAT, exc. fuel) for the 13 weeks ended 24 May 2025:
| Sales (£m) | LFL sales change | |
| UK & ROI | 15,386 | 4.7% |
| UK | 12,305 | 5.1% |
| ROI | 772 | 5.5% |
| Booker | 2,309 | 2.0% |
| Central Europe | 997 | 4.1% |
| Group | 16,383 | 4.6% |
Ken Murphy, Chief Executive:
“We are pleased with our performance across the first quarter. 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.
In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation. We introduced over 350 new own-brand products across the quarter, including the launch of our exciting summer food range, and Finest is going from strength to strength, with sales up 18% year-on-year.
The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco. I would like to thank every one of our colleagues for the contribution they are continuing to make to deliver the best possible shopping trip for our customers.”
Performance highlights1.
UK: Continued market share momentum and further improvement in customer satisfaction
| • | UK market share +44bps YoY to 28.0%2 with 24 consecutive four-week periods of share gains |
| • | Overall UK brand perception +65bps YoY3; with further improvements in quality and value perception |
| • | Maintained our strong price positioning relative to the market; Aldi Price Match on >600 lines, Low Everyday Prices on around 1,000 lines and around 9,000 Clubcard Prices deals each week |
| • | Food sales up +5.9%, with a strong contribution from fresh food; non-food sales (excluding toys) up +6.2%4, with strong growth in home and clothing, benefiting from new and extended ranges as well as warmer weather |
| • | Launched over 350 new products, including our new Finest Regional Italian range and enhancements to our Fire Pit barbecue range; awarded 40 Gold and Silver medals at the International Wine Competition |
| • | Growth across all channels, led by Online, where sales were up +11.5% and market share up +163bps5 as we increased capacity and saw improving customer satisfaction |
| • | Online launch of F&F in May, helping more customers access our range of stylish and affordable clothing |
| • | Awarded first place in the Advantage supplier survey for the 10th year in a row |
ROI: Market share growth and higher volumes, driven by food
| • | Continued growth in ROI market share, up +22bps to 23.3%6, delivering 40 consecutive four-week periods of share gains |
| • | Food sales up +5.8%, with volume growth supported by continued investment in our fresh proposition; Irish fresh food range received 10 Monde Selection awards |
| • | Growth across all channels, led by Online with sales up +19.8% which continues to benefit from the launch of same-day Click & Collect and home delivery last year |
Booker: Strength in core catering and retail offsets tobacco market decline
| • | Core catering growth of +7.3%, supported by warmer weather and a strong Easter |
| • | Core retail growth of +5.4%, driven by strong symbol brands performance |
| • | Total Booker LFL growth of +2.0% impacted by the continued decline in tobacco and Best Food Logistics |
Central Europe: LFL growth across all markets driven by strong food performance
| • | LFL growth across all regions, driven by a strong performance in food +4.4% |
| • | Fresh food sales up +7.3%, with strong contributions from produce, dairy and bakery categories; packaged sales up +1.6% |
| • | Targeted price investments in the context of increased competitive pressure and new regulation in Hungary which introduces a margin cap on certain food products |
Guidance (unchanged versus Preliminary Results published on 10 April 2025).
We continue to expect Tesco Plc adjusted operating profit of between £2.7bn and £3.0bn for FY 25/26 (FY 24/25: £3,128m), and free cash flow within our medium-term guidance range of £1.4bn to £1.8bn.
Since the commencement of our £1.45bn share buyback programme on 10 April 2025 and up until market close on 11 June 2025, we have bought back £448m worth of our ordinary shares. The balance will be completed by April 2026.
A call for investors and analysts will be held today at 09:00am. A link will be available on our website at www.tescoplc.com/investors. A transcript and playback facility will also be made available after the call.
We will report our Interim Results on Thursday 2 October 2025.
