• Tesco Lifts Profit Forecast on Strong Christmas Sales and Decade-High Market Share
WELWYN GARDEN CITY, UK – Tesco PLC on Thursday raised its full-year profit guidance following strong sales during the third quarter and Christmas trading period.
The grocery retailer also announced it achieved its highest market share in the United Kingdom in over a decade.
What is new?
Tesco reported a group like-for-like sales increase of 2.9% for the 19 weeks ending January 3, 2026, which covers its third quarter and the Christmas season. Following this performance, the company announced it now expects to deliver full-year 2025/26 adjusted operating profit at the upper end of its £2.9bn to £3.1bn guidance range. The company stated it continues to expect free cash flow to be within its medium-term guidance of £1.4bn to £1.8bn.
Key Performance Highlights
In the United Kingdom, Tesco’s primary market, like-for-like sales grew by 3.7% over the 19-week period. The company’s 12-week market share increased to 28.7%, its highest level in over a decade, reflecting 32 consecutive periods of year-on-year gains.
The performance was driven by strong results in fresh food, where like-for-like sales rose 6.6%, and a 4.4% growth in clothing sales during the Christmas period. Online sales grew by 11.2%, with the company’s rapid delivery service, Whoosh, seeing a 47% sales increase and attracting over 250,000 new customers.
The Republic of Ireland (ROI) division saw sales grow 4.6%, with market share gains for a fourth consecutive year. The Central Europe division reported a 1.0% sales increase, driven by fresh food and online growth. The Booker wholesale division reported an overall sales decline of 1.3%, which the company attributed to a decline in the tobacco market and the ending of a lower-margin national account in August 2025.
Strategic Initiatives
According to Chief Executive Ken Murphy, the results were driven by investments in value, quality, and service. The company introduced 340 new or improved own-brand Christmas products, with its premium Finest range growing sales by 13.0%. To manage festive demand, Tesco hired 28,500 additional staff and added 100,000 extra online delivery slots, which were enabled by AI-powered scheduling tools. The company also expanded its “Everyday Low Prices” program to over 3,000 branded products, which runs alongside its “Aldi Price Match” initiative and Clubcard offers.
About this company
Tesco PLC is a British multinational grocery and general merchandise retailer. Headquartered in Welwyn Garden City, UK, the company’s main operations are in the United Kingdom, Republic of Ireland, and Central Europe. Its business segments also include the Booker wholesale division, which serves catering and retail customers.
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