Tesco sees strong results as it bets on online and its own brands
High-street retailer Tesco has published a trading statement for Q1 2025/2026, with the group showing strong results on the back of impressive online sales, strong customer loyalty, and a focus on its in-house brands.
Growth was seen across all channels, led by online, where sales were up +11.5% and market share up +163bps as it increased capacity and saw improving customer satisfaction
Food sales were up +5.9%, with a strong contribution from fresh food; non-food sales (excluding toys) were up +6.2%, with strong growth in home and clothing, benefiting from new and extended ranges as well as warmer weather.
The group said it continues to expect adjusted operating profit of between £2.7 billion and £3.0 billion for FY 25/26 (FY 24/25: £3,128 million), and free cash flow within its medium-term guidance range of £1.4 billion to £1.8 billion.
“We are pleased with our performance across the first quarter. 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,” said Chief Executive Ken Murphy.
“In the UK, we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation.
“We introduced over 350 new own-brand products across the quarter, including the launch of our exciting summer food range, and Finest is going from strength to strength, with sales up 18% year-on-year.”
Murphy noted that the market remains intensely competitive, and the group is committed to ensuring customers get the best value in the market by shopping at Tesco.
