Tesco upgrades profits to £2.6 billion after a stronger than expected Christmas

Tesco were one of many retailers that upped their profit guidance after a stellar Christmas
Tesco were one of many retailers that upped their profit guidance after a stellar Christmas
// Tesco says it had defied supply chain issues to ensure customers had a great Christmas, as sales boomed across the period
// The grocer now expects profits to be at the top end of a range from £2.5 billion to £2.6 billion

The UK’s largest supermarket chain has reported a strong Christmas for sales in the face of “growing cost pressures and supply chain challenges”.

Tesco reported a 2.7% rise in like-for-like sales for its core UK and Ireland grocery business during the six weeks to 8 January compared to the same period last year.

It credited a focus on value for claiming its highest share in four years during the festive season; growing share both in stores & online.

The company said its large stores and convenience outlets did particularly well while it now had its highest share of the home delivery market since the Covid pandemic began with Tesco taking an average 1.2 million orders per week.

Sales rose despite tough comparisons with Christmas 2020 when tighter public health restrictions were in place – a scenario which prompted a rush for groceries.

Chief executive Ken Murphy said: “We are delighted that we were able to help our customers have a great Christmas.  Despite growing cost pressures and supply chain challenges in the industry, we continued to invest to protect availability, doubled down on our commitment to deliver great value and offered our strongest ever festive range,”

“This put us in a strong position to meet customers’ needs as, once again, Covid-19 led to a greater focus on celebrating at home.  As a result, we outperformed the market, growing market share and strengthening our value position.”

In the 19 weeks to January 8, sales were up 8.6% on two years ago. They were up 2.4% on a year ago.

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