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Tesco Q1 Sales Increase as Market Share Continues to Grow

Sam Boughedda trader
Updated 14 Jun 2024

Tesco (LON: TSCO) reported continued momentum in its business for the first quarter of the 2024/25 financial year, with strong sales growth and increasing market share.

Sales across the UK and Republic of Ireland (ROI) rose 3.6%, driven by volume growth across all categories, particularly fresh food. Tesco maintained its position as the cheapest full-line grocer in the UK for the 19th consecutive period.

The company's market share grew to 27.6%, its highest level in two years, as customers switched from competitors and increased their basket sizes. Tesco Finest sales were particularly strong, reflecting improved customer perception of product quality.

Tesco store

“[We] are the most competitive we've ever been, with our value, product quality, and service driving better brand perception and customer satisfaction,” said Ken Murphy, Chief Executive.

Tesco's online sales grew by 8.9%, driven by volume growth and their Whoosh rapid delivery service.

In the ROI market, Tesco achieved its fourth consecutive quarter of volume growth, further increasing its market share. Booker, Tesco's wholesale arm, saw continued growth in core retail and catering despite a decline in overall sales due to a tough comparative period. Central European sales also grew, driven by strong food volumes.

Tesco reiterated its full-year guidance, expecting retail adjusted operating profit of at least £2.8 billion and retail free cash flow within the range of £1.4 billion to £1.8 billion.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.