Tesco Shares Rally on Continued Market Share Momentum

Tesco (LON: TSCO) shares rose as much as 2% in early Thursday trading following a robust first-quarter trading update, which highlighted continued market share gains. 

The supermarket giant reported strong like-for-like sales growth for the 13 weeks ended 24 May 2025.

Group like-for-like sales, excluding VAT and fuel, rose by 4.6%. The UK market’s like-for-like sales rose 5.1%, contributing to a 44 basis point year-on-year market share gain, reaching 28%. This marks 24 consecutive four-week periods of share gains for Tesco in the UK. 

The Republic of Ireland also showed strong growth, with like-for-like sales up 5.5% and market share increasing by 22 basis points to 23.3%.

Overall, group sales came in at £16.38 billion.

Ken Murphy, Chief Executive, stated: “Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group.”

He further noted improvements in overall UK brand perception, along with enhanced perceptions of both quality and value.

Tesco believes its strategy of offering competitive pricing, including Aldi Price Match and Clubcard Prices, coupled with the launch of over 350 new own-brand products, has been instrumental in its strong performance. 

The company maintained its full-year guidance for adjusted operating profit between £2.7 billion and £3 billion.