BREAKING NEWS: Tesco has just announced its highest market share in over a decade, fueled by a significant rise in festive sales despite fierce competition in the supermarket sector. The UK’s largest grocery chain reported a remarkable 3.3% increase in like-for-like sales across the UK and Ireland for the six weeks leading to January 3, 2024. This growth includes a 3.2% rise in the UK and an impressive 3.8% in Ireland.
This surge in sales comes on the heels of a 4% growth reported in the third quarter, covering the 13 weeks to November 22. Tesco’s market share increased to 28.7% during the three months ending December 28, soaring to 29.4% in the crucial Christmas month, according to Worldpanel data.
The strong performance during the festive season positions Tesco for annual profits at the upper end of its revised guidance, estimated between £2.9 billion and £3.1 billion. However, the growth marks a slight slowdown compared to the 3.7% increase reported for the same period last year. The company acknowledged that competition remains intense, with major players battling on price to attract customers.
Chief Executive Ken Murphy emphasized the strategy behind this success, stating, “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 maintaining value is essential for customers amid ongoing price wars.
In a strategic move to bolster its competitive edge, Tesco is reintroducing its iconic blue-and-white striped value logo, which it phased out in 2012. This initiative aims to symbolize value at Tesco and will be highlighted in a major marketing campaign focusing on low prices for leading branded products.
As Tesco continues to navigate a challenging retail landscape, industry observers are closely watching how these developments will influence market dynamics and customer preferences in the coming months. The return of the blue-and-white stripes signals Tesco’s commitment to reinforcing its brand identity and enhancing customer loyalty as competition heats up with discount retailers like Aldi.
Stay tuned for more updates on this developing story as Tesco aims to capitalize on its momentum and adapt to the evolving grocery market landscape.
