Tesco's Meteoric Rise: Market Share and Profits Soar
Tesco, the UK's largest supermarket, has raised its profit forecast for the full year, crediting an unusually hot summer and strategic market moves for its success. The group now expects operating profits between £2.9 billion and £3.1 billion, citing increased market share and successful investment strategies.
Britain's largest supermarket chain, Tesco, has revised its full-year profit forecast upwards, attributing this improvement to a hot summer and strategic moves that enhanced its market share. With its grocery market share now standing at 28.4%, Tesco anticipates an adjusted operating profit for 2025/26 ranging from £2.9 billion to £3.1 billion.
The supermarket's profit for the 2024/25 period was recorded at £3.13 billion. However, UK like-for-like sales have maintained a strong momentum, growing by 4.9% in the first half of the year. This impressive performance comes despite significant competitive pressure, as noted by Tesco.
After avoiding a feared price war with rival Asda, Tesco's market position has strengthened, buoyed by its strategic price alignment with Aldi and the success of its Clubcard loyalty program. Analyst insights suggest that Tesco's digital initiatives, including its online Marketplace and retail media ventures, are driving ongoing growth.
(With inputs from agencies.)
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