Tesco has upgraded its profit guidance for the year after continued investment into its customer offer led to a “stronger trading performance than anticipated”.
Like-for-like sales for the grocer jumped 7.5% in the 19 weeks to 6 January, covering its third quarter and festive sales.
The supermarket said like-for-like sales growth over six weeks to 6 January was 6.8% higher compared to the same period last year and 9.2% higher in the four weeks to Christmas.
As a result of the strong trading, Tesco has increased its profit guidance to £2.75bn from its previous range of £2.6bn to £2.7bn.
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Chief executive Ken Murphy said: “The Tesco team has worked harder than ever to help customers celebrate this Christmas, with our strongest ever range of great value, fantastic quality food.
“We stepped up our investment in service over the key festive period, with more colleagues on the shop floor, helping to deliver market-leading availability and making this our best Christmas yet.”
Tesco online sales surged 11.5% in the lead up to Christmas and sales for its premium Finest range rocket 16.7%.
Murphy added: “We put a strong focus on quality and innovation too, with over 550 new and improved festive products. Over the period we cut nearly 2,700 prices, with a further 150 prices cut just this week, cementing our position as the UK’s cheapest full-line grocer.
“Our powerful combination of great value, quality, availability and service means that we head into the New Year in great shape to keep delivering for customers.”
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