Tesco has achieved its highest market share in more than a decade following a strong Christmas performance.
Sales at the supermarket improved by 3.2% in the UK over the six weeks to 3 January, with the group growing at a slower pace of 2.4% as a 2.1% decline at Booker dragged down the overall figure.
Tesco said it outperformed the market on both value and volume terms, with market share hitting 29.4% in the four weeks to 28 December.
It highlighted a particular standout performance in fresh food, with like-for-like sales up 6.6%, reflecting “ongoing investments in value and quality” across the ranges.
Tesco also reported group growth of 3.1% in the third quarter, covering 13 weeks to 22 November.
Thanks to the strong showing over Christmas, Tesco added it now expected adjusted operating profits to be at the upper end of the £2.9bn to £3.1bn guidance for the full year.
“I am delighted with the strong Christmas we delivered for our customers,” said CEO Ken Murphy. ”Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade.”
He added that the premium Finest own label range once again delivered double-digit sales growth over Christmas, as did online sales.
“Competition is as intense as ever and we know value remains a priority for customers,” he said. ”We are determined to help customers make their money go further.”
The comments follow Tesco expanding its Everyday Low Prices commitment to more than 3,000 branded products earlier this week as it brought back its blue-and-white ‘value’ stripes.
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