Tesco has reported a robust Christmas trading performance, achieving its highest UK market share in over ten years, underpinned by sustained investment in value, quality and customer service.
Ken Murphy, Chief Executive of Tesco, said the retailer’s festive success reflected a sharp focus on customer priorities at a time of intense competition and continued pressure on household budgets.
“Our investments in value, quality and service have driven further gains in customer satisfaction and strong growth in fresh food,” Murphy said. “This has contributed to our highest UK market share in more than a decade, and we are well positioned for the year ahead.”
UK: Market Share Gains Driven by Value and Fresh Food
In the UK, Tesco outperformed the market on both value and volume. Over the latest 12-week period, market share rose by 23 basis points to 28.7%, while the most recent four-week share increased by 31 basis points to 29.4%. This marks 32 consecutive four-week periods of year-on-year market share growth.
Customer satisfaction continued to improve, with Net Promoter Scores rising faster than the wider market. Fresh food was a standout category, with like-for-like sales up 6.6%, reflecting ongoing improvements in quality, availability and pricing.
Tesco further strengthened its price position during the festive period, offering high-profile value propositions such as a Christmas dinner for six for under £10, half-price Finest mince pies, and significantly discounted beef roasting joints.
Own Brand, Online and Convenience Perform Strongly
The retailer launched 340 new and improved own-brand Christmas products, including 180 additions to its premium Finest range. Finest delivered double-digit growth, with sales up 13%, while party food sales surged by 22%, reinforcing quality perception gains across the range.
Online continued to be a major growth driver. Tesco added 100,000 additional delivery slots in the week before Christmas, supported by AI-powered scheduling tools developed by its technology and logistics teams. Online sales grew by 11.2%, while rapid delivery service Whoosh recorded sales growth of 47% and attracted more than 250,000 new customers over the festive period.
To support peak demand, Tesco recruited 28,500 additional colleagues, a move Murphy described as central to maintaining high service standards during the busiest trading weeks of the year.
Value Proposition Expanded Further
Acknowledging that value remains a top priority for customers, Tesco recently expanded its Everyday Low Prices commitment to more than 3,000 branded products. This sits alongside Aldi Price Match on over 650 lines and thousands of personalised promotions available through Clubcard Prices, Challenges and Missions.
ROI, Booker and Central Europe
In Ireland, Tesco continued to gain market share for a fourth consecutive year, increasing by 41 basis points to 24.0%. Food sales rose 5.2%, driven again by fresh food, while the business received strong external recognition for quality and innovation, winning 26 gold medals at the Blas na hÉireann awards.
Booker delivered solid performance in its core catering business, up 2.4%, with specialist wine and spirits merchant Venus making a strong contribution. This w