Tesco Shares Gain on Strong Holiday Sales and Market Share Growth
Tesco PLC (TSCO.L) shares ROSE 1.7% in early London trading, buoyed by robust Christmas grocery sales and an increase in UK market share—the highest since 2015. The supermarket giant's strategic promotions and operational efficiency during the critical festive period paid off, with its market share climbing to 28.7%.
UK grocery sales grew 3.8% year-over-year to £13.8 billion in the four weeks ending December 28, according to Numerator data. Tesco outperformed competitors like J Sainsbury and Ocado, signaling strong consumer traction. Investors await the January 8 trading update to assess whether these gains translate into improved profitability.
While easing grocery inflation (down to 4.3% from 4.7%) offers some relief, Tesco’s share buyback program continues to bolster earnings per share and market confidence. The retail sector’s resilience amid macroeconomic pressures remains a focal point for analysts.
