Supermarket leader toasts UK market share gains
Tesco has reported an increase in turnover and profits for the first half of 2025/26.
The grocery market leader announced group sales, excluding VAT and fuel, of £33.1bn, up 5.1 per cent on a year ago. Group adjusted operating profit was up 1.5 per cent at actual rates, to £1.7bn.
The company said like-for-like sales were up 4.9 per cent in the UK, with volume-driven market share gains, good weather and progress in the Save to Invest programme offsetting investment in the customer offer and operating cost inflation.
UK online sales were up 11.4 per cent, driven by growth in orders per week, while Tesco Whoosh rapid delivery service sales rose 59 per cent.
Tesco noted that competitive intensity has increased in the UK market, but said its investment in keeping prices down had been offset by a better-than-expected customer response and an extended period of good weather.
“I am pleased with our first half performance, which builds on already strong momentum,” said chief executive Ken Murphy. “Our market share gains in the UK are a particular highlight and reflect the decisive action we took at the start of the year to further invest in value, quality and service.
“The extension of our savings programme is helping offset new operating cost inflation, including increased National Insurance and other regulatory costs. Sales have grown across all our businesses, with customer satisfaction scores improving once again.
“The steps we have taken to keep prices down for customers have improved our price position relative to the market. We have continued to enhance quality across all our ranges, including Finest, which is now in its third year of double-digit sales growth.
“Our summer ranges also benefited from over 470 new products and we continued to deliver market-leading availability. The opening of our new semi-automated distribution centre in Aylesford will further support our core fresh food offer.”
