British supermarket group Tesco has recorded a 28% rise in market share in the UK, with an increase of 44 basis points year-on-year (YoY) for the 13 weeks ended 24 May 2025 (Q1 2025/26).
This consistent growth marks 24 consecutive four-week periods of share gains and an improvement in customer satisfaction, with UK brand perception up by 65 basis points (bps) YoY.
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Tesco CEO Ken Murphy stated: “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.”
The retailer has maintained strong price positioning in the market, matching the prices of competitor Aldi on more than 600 lines, offering its Low Everyday Prices on around 1,000 lines, and presenting 9,000 Clubcard Prices deals each week.
Tesco’s food sales have risen by 5.9%, with fresh food making a notable contribution.
Non-food sales, excluding toys, have seen a 6.2% increase, with significant growth in home and clothing sectors, aided by new and extended ranges, as well as warmer weather conditions.
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By GlobalDataGrowth has been observed across all channels, particularly online, where sales increased 11.5% and market share rose 163 basis points.
In the Republic of Ireland (ROI), market share growth and higher volumes have been driven by food sales which increased by 5.8%. Continued investment in fresh produce has supported the volume growth.
Tesco’s return on investment market share has continued to grow, rising 22 basis points to 23.3% and marking 40 consecutive four-week periods of share gains.
Central Europe has also experienced LFL growth across all markets, driven by a strong food performance of 4.4%.
Fresh food sales in this region have increased 7.3%, with significant contributions from produce, dairy and bakery categories.
Packaged sales are up by 1.6%, despite targeted price investments and new regulation in Hungary introducing a margin cap on certain food products.
Tesco is reiterating full year guidance first announced in April.
The company expects its adjusted operating profit to be between £2.7bn and £3.0bn for the financial year 25/26 – lower than the £3.13bn achieved in the previous financial year.
It also expects free cash flow within the medium-term guidance range of £1.4bn to £1.8bn.
